State Implementation Plan Revision 

New Source Review 

Final Version 

Air Quality Division 

October 2012 
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State Implementation Plan Revision 

New Source Review 3 October 2012 

1 Introduction 

The purpose of this State Implementation Plan (SIP) Revision is to bring the State of 

Arizona’s SIP for areas under the jurisdiction of the Arizona Department of 

Environmental Quality (ADEQ) into compliance with the New Source Review (NSR) 

requirements of section 110(a)(2)(C) and 40 C.F.R. Part 51, Subpart I, with the exception 

of the requirements pertaining to greenhouse gases (GHGs). 

ADEQ is currently administering the NSR requirements for GHGs under a delegation 

agreement with EPA. The State intends to continue to address NSR for GHGs in this 

manner until the uncertainty created by litigation relating to those requirements has been 

resolved. ADEQ therefore recognizes that EPA will be required to grant only partial 

approval of this plan revision and must issue a partial disapproval to the extent the plan 

does not cover GHGs. No further action relating to the partial disapproval will be 

necessary, since EPA has already promulgated a Federal Implementation Plan (FIP) for 

GHG NSR and has delegated ADEQ authority to administer that FIP. 

Section 2 of this document addresses the criteria for an official SIP submission as set 

forth in 40 C.F.R. Part 51, Appendix V. 

2 Criteria 

2.1 Administrative Materials 

2.1(a)

2.1(b)

A formal letter of submittal from the 

Governor or [her] designee, requesting EPA 

approval of the plan or revision thereof 

(hereafter ‘‘the plan’’). 

See cover letter for SIP submission and attached delegation of authority from Henry R. 

Darwin, Director of ADEQ to Eric Massey, Director of the ADEQ Air Quality Division, 

authorizing Mr. Massey to perform any act the ADEQ Director is authorized to perform 

under the state air quality statutes, including the submission of SIPs to EPA. 

Evidence that the State has adopted the plan 

in the State code or body of regulations; or 

issued the permit, order, consent agreement 

(hereafter ‘‘document’’) in final form. 

This SIP submission consists of extensive revisions to ADEQ’s NSR program designed 

to insure that it conforms to Clean Air Act requirements, as well as existing, un-amended 

Arizona statutes and rules. 

The Notice of Final Rulemaking (NFRM) for the NSR revisions published in the Arizona 

Administrative Register on July 6, 2012 is attached as Appendix A. Under A.R.S. § 41-

1013(A)(9), included in Appendix E, the Administrative Register is the official Arizona 

publication for final rules. 
State Implementation Plan Revision 

New Source Review 4 October 2012 

In addition, Appendix E includes (1) the certificate of approval of the NFRM by the 

Governor’s Regulatory Review Council (GRRC) and (2) a receipt from the Arizona 

Secretary of State showing that the approved NFRM was filed on July 6, 2012. Under 

A.R.S. §§ 41-1052(A) and 41-1031(A) (also included in Appendix E), approval by 

GRRC and filing with the Secretary of State are the final steps in the adoption an Arizona 

rule. Under A.R.S. § 41-1032(A) (Appendix E), the final rules became final 60 days after 

they were filed and time-stamped, or on August 7, 2012, according to the NFRM. 

Existing rules and statutes from the Arizona Revised Statutes and Arizona Administrative 

Code are attached as Appendix B. 

2.1(c)

2.1(d)

Evidence that the State has the necessary 

legal authority under State law to adopt and 

implement the plan. 

ADEQ is authorized to issue and administer NSR rules and to submit the rules for 

approval in the SIP under Arizona Revised Statutes sections 49-104, 49-106, 49-404, 49-

406 and 49-425, which are attached as Appendix C. 

A copy of the actual regulation, or document 

submitted for approval and incorporation by 

reference into the plan, including indication 

of the changes made to the existing approved 

plan, where applicable. 

See Appendices A and B. 

The following rules are being amended by the NFRM in order to conform to the other 

amendments but are not related to NSR and therefore not included in this SIP Revision: 

R18-2-317.02, R18-2-321, R18-2-324, R18-2-327, R18-2-614 and R18-2-719. The 

amended rules not included in the SIP submission are also marked as such on Appendix 

A. 

Table 2-1 below shows the rules being added and replaced by this SIP Revision. 

Because ADEQ has a unitary permit program that authorizes construction and operation 

of a permit or modification with a single permit or permit revision, some of the rules 

identified below apply both to sources subject to major and minor NSR and existing 

sources. These rules are identified by italics. ADEQ requests a determination from EPA 

in the SIP approval that these rules are part of the SIP and federally enforceable solely for 

purposes of major and minor NSR. 

In order to promote maximum consistency between state and federal law and to 

streamline administration of ADEQ’s NSR program, ADEQ requests that EPA remove 

each of the rules identified in the second column of the table from the approved SIP. 
State Implementation Plan Revision 

New Source Review 5 October 2012 

Table 2-1 

Rules to Be Added to and Removed from the SIP 

Rule or Statute Added SIP Rule(s) Replaced Amended by 

NFRM 

A.R.S. § 49-402. State and county 

control 

R9-3-1101. Jurisdiction No 

A.R.S. § 49-426(F). Permits; duties 

of director; exceptions; 

applications; objections; fees 

Permit term subsection 

R9-3-306(J). Operating Permits No 

R18-2-101. Definitions R9-3-101. Definitions (also 

replaced by R18-2-301, R18-2-

401 and R18-2-701) 1

Yes 

R18-2-102. Incorporated Materials R9-3-310. Az Testing Manual for 

Air Pollutant Emissions 

Yes 

R18-2-201. Particulate matter: 

PM10 and PM2.5 

R9-2-201. Particulate Matter 

R9-3-218. Violations 

Yes 

R18-2-202. Sulfur oxides (sulfur 

dioxide) 

R9-3-202. Sulfur Oxide (Sulfur 

Dioxide) 

R9-3-218. Violations 

Yes 

R18-2-203. Ozone: 1-hour standard 

and 8-hour averaged standard 

R9-3-204. Ozone 

R9-3-218. Violations 

Yes 

R18-2-205. Nitrogen oxides 

(nitrogen dioxide) 

R9-3-206. Nitrogen Dioxide 

R9-3-218. Violations 

Yes 

R18-2-206. Lead R9-3-207. Lead 

R9-3-218. Violations 

Yes 

R18-2-210. Attainment, 

Nonattainment, and 

Unclassifiable Area Designations 

R9-3-217. Attainment Areas: 

Classification and Standards 

(subsection A) 

Yes 

 

1

 The state rules currently included in the SIP can be found at: 

http://yosemite.epa.gov/R9/r9sips.nsf/Agency?ReadForm&count=500&state=Arizona&cat=Arizona+Depa

rtment+of+Environmental+Quality-Agency-Wide+Provisions. 
State Implementation Plan Revision 

New Source Review 6 October 2012 

Rule or Statute Added SIP Rule(s) Replaced Amended by 

NFRM 

R18-2-215. Ambient air quality 

monitoring methods and 

procedures 

R9-3-215 No 

R18-2-216. Interpretation of 

Ambient Air Quality Standards 

and Evaluation of Air Quality 

Data 

R9-3-216 No 

R18-2-217. Designation and 

Classification of Attainment 

Areas 

None No 

R18-2-218. Limitation of 

Pollutants in Classified 

Attainment Areas 

R9-3-217. Attainment Areas: 

Classification and Standards 

(subsection B) 

Yes 

R18-2-301. Definitions R9-3-101. Definitions (also 

replaced by R18-2-301, R18-2-

401 and R18-2-701) 

Yes 

R18-2-302. Applicability; 

Registration; Classes of Permits 

R9-3-301. Installation Permits: 

General (subsections A and B) 

R9-3-306. Operating Permits 

(subsection A) 

Yes 

R18-2-302.01. Source Registration 

Requirements 

None Yes 

R18-2-303.Transition from 

Installation and Operating Permit 

Program to Unitary Permit 

Program; Registration transition; 

Minor NSR transition 

None Yes 

R18-2-304. Permit Application 

Processing Procedures 

R9-3-301. Installation Permits: 

General (subsections E, I, M-P) 

R9-3-306. Operating Permits 

(subsections C-F, I) 

R9-3-318. Denial or revocation of 

installation or operating permit 

(subsection A, C) 

Yes 
State Implementation Plan Revision 

New Source Review 7 October 2012 

Rule or Statute Added SIP Rule(s) Replaced Amended by 

NFRM 

R18-2-306. Permit Contents R9-3-301. Installation Permits: 

General (subsections C, D, G, 

H) 

R9-3-306. Operating Permits 

(subsections B, G) 

R9-3-308. Permit Conditions 

No 

R18-2-310.01. Reporting 

Requirements 

R9-3-314. Excess Emissions 

Reporting 

Yes 

(amending 

SIPapproved 

rule) 

R18-2-306.01.Permits Containing 

Voluntarily Accepted Emission 

Limitations and Standards 

None No 

R18-2-306.02. Establishment of an 

Emissions Cap 

None No 

R18-2-315. Posting of Permit R9-3-315. Posting of Permits No 

R18-2-316. Notice by Building 

Permit Agencies 

R9-3-316. Notice by Building 

Permit Agencies 

No 

R18-2-319. Minor Permit 

Revisions 

R9-3-301. Installation Permits: 

General 

Yes 

R18-2-320. Significant Permit 

Revisions 

R9-3-301. Installation Permits: 

General 

Yes 

R18-2-321. Permit Reopenings; 

Revocation and Reissuance; 

Termination 

R9-3-318. Denial or revocation of 

installation or operating permit 

(subsection B, C) 

Yes 

R18-2-323. Permit Transfers R9-3-317. Permit Nontransferrable; Exception No 

R18-2-330. Public Participation R9-3-301. Installation Permits: 

General (subsections J-L) 

Yes 

R18-2-332. Stack Height 

Limitation 

None No 
State Implementation Plan Revision 

New Source Review 8 October 2012 

Rule or Statute Added SIP Rule(s) Replaced Amended by 

NFRM 

R18-2-401. Definitions R9-3-101. Definitions (also 

replaced by R18-2-301, R18-2-

401 and R18-2-701) 

Yes 

R18-2-402. General R9-3-301. Installation Permits: 

General (subsection C(2), Q) 

R9-3-307. Replacement 

Yes 

R18-2-403. Permits for Sources 

Located in Nonattainment Areas 

R9-3-302. Installation Permits in 

Nonattainment Areas 

Yes 

R18-2-404. Offset Standards R9-3-303. Offset Standards Yes 

R18-2-405. Special Rule for Major 

Sources of VOC or Nitrogen 

Oxides in Ozone Nonattainment 

Areas Classified as Serious or 

Severe 

None Yes 

R18-2-406. Permit Requirements 

for Sources Located in 

Attainment and Unclassifiable 

Areas 

R9-3-304. Installation Permits in 

Attainment Areas 

Yes 

R18-2-407. Air Quality Impact 

Analysis and Monitoring 

Requirements 

R9-3-301. Installation Permits: 

General (subsection F) 

R9-3-305. Air Quality Analysis 

and Monitoring Requirements 

Yes 

R18-2-409. Air Quality Models R9-3-311. Air Quality Models No 

R18-2-412. PALs None Yes 

R18-2-502. General Permit 

Development 

None Yes 

R18-2-503. Application for 

Coverage under General Permit 

None Yes 

R18-2-504. Public Notice None No 

R18-2-505. General Permit 

Renewal 

None Yes 
State Implementation Plan Revision 

New Source Review 9 October 2012 

Rule or Statute Added SIP Rule(s) Replaced Amended by 

NFRM 

R18-2-512. Changes to Facilities 

Granted Coverage under 

General Permits 

None Yes 

R18-2-513. Portable Sources 

Covered under a General Permit 

None Yes 

R18-2-701. Definitions R9-3-101. Definitions (also 

replaced by R18-2-301, R18-2-

401 and R18-2-701) 

Yes 

None R9-3-319 Permit Fees 

Appendices 4 and 5 

No longer required under Clean Air 

Act § 110(a)(2)(L) 

No 

None R9-3-322 Temporary Conditional 

Permits 

Program no longer administered by 

ADEQ. Not necessary to meet 

NSR or other Clean Air Act 

requirements. 

No 

2.1(e)

2.1(f)

Evidence that the State followed all of the 

procedural requirements of the State’s laws 

and constitution in conducting and 

completing the adoption/issuance of the 

plan. 

As demonstrated in Section 2.1(b) above, ADEQ has complied with all requirements of 

state law for adoption of the rule revisions included in this SIP Revision. 

Evidence that public notice was given of the 

proposed change consistent with procedures 

approved by EPA, including the date of 

publication of such notice. 

Proof that ADEQ gave notice of the SIP Revision in accordance with A.R.S. § 49-444 is 

attached as Appendix F. 
State Implementation Plan Revision 

New Source Review 10 October 2012 

2.1(g)

2.1(h)

2.2(a)

Certification that public hearing(s) were held 

in accordance with the information provided 

in the public notice and the State’s laws and 

constitution, if applicable and consistent with 

the public hearing requirements in 40 CFR 

51.102. 

The certification and other documents related to the public hearing are attached as 

Appendix G. 

Compilation of public comments and the 

State’s response thereto. 

All public comments submitted on the Notice of Proposed Rulemaking for the NSR 

program amendments and on the SIP Revision are attached as Appendix H. ADEQ’s 

response to the comments is included in the NFRM, beginning at page 1561 of the 

Administrative Register. 

2.2 Technical Support 

Identification of all regulated pollutants 

affected by the plan. 

ADEQ’s NSR rules cover the following “regulated NSR pollutants,” as defined by EPA 

regulations and new R18-2-101(122): 

a. Any pollutant for which a national ambient air quality standard has been 

promulgated and any pollutant identified under this subsection as a 

constituent or precursor to such pollutant. Precursors for purposes of NSR 

are the following: 

i. Volatile organic compounds and nitrogen oxides are precursors to 

ozone in all areas. 

ii. Sulfur dioxide is a precursor to PM2.5 in all areas. 

iii. Nitrogen oxides are precursors to PM2.5 in all areas. 

b. Any pollutant that is subject to any standard promulgated under article 9 

of this chapter. 

c. Any Class I or II substance subject to a standard promulgated under or 

established by Title VI of the Act as of July 1, 2010. 

d. [Reserved.] 

e. Notwithstanding subsections (a) through (d) of this definition, the term 

regulated NSR pollutant shall not include any or all hazardous air 

pollutants listed under R18-2-1101, unless the listed hazardous air 

pollutant is also regulated as a constituent or precursor of a general 

pollutant listed under section 108 of the Act as of July 1, 2010. 

f. Particulate matter emissions, PM2.5 emissions, and PM10 emissions shall 

include gaseous emissions from a source or activity which condense to 

form particulate matter at ambient temperatures. On and after January 1, 
State Implementation Plan Revision 

New Source Review 11 October 2012 

2011, condensable particulate matter shall be accounted for in 

applicability determinations and in establishing emissions limitations for 

particulate matter, PM2.5 and PM10 in permits issued under Article 4. 

2.2(b)

2.2(c)

2.2(d)

Identification of the locations of affected 

sources including the EPA attainment/ 

nonattainment designation of the locations 

and the status of the attainment plan for the 

affected areas(s). 

ADEQ’s NSR rules are potentially applicable to all areas and sources under ADEQ’s 

jurisdiction. 

Quantification of the changes in plan 

allowable emissions from the affected 

sources; estimates of changes in current 

actual emissions from affected sources or, 

where appropriate, quantification of changes 

in actual emissions from affected sources 

through calculations of the differences 

between certain baseline levels and allowable 

emissions anticipated as a result of the 

revision. 

The NSR rules will not result in any changes to allowable or actual emissions from 

existing sources. Changes to the allowable or actual emissions of new and modified 

sources subject to the program will depend on the case-by-case application of NSR 

control requirements to each source and cannot be quantified. 

The State’s demonstration that the national 

ambient air quality standards, prevention of 

significant deterioration increments, 

reasonable further progress demonstration, 

and visibility, as applicable, are protected if 

the plan is approved and implemented 

(Section 110(l) demonstration). 

As in indicated in section 2.1(d), with the exceptions noted below, this SIP Revision will 

replace existing SIP rules with requirements that are either as stringent or more stringent. 

The following discussion demonstrates that the exceptions will not interfere with any 

applicable requirement concerning attainment, reasonable further progress, increments or 

visibility. The requirements of CAA § 110(l) and 40 C.F.R. Part 51, Appendix V, § 2.2(d) 

are therefore satisfied. 
Definition of Major Source – “One-Time Doubling Rule” 

Under the definition of “major stationary source” in SIP Rule 9-3-101, “any change to a 

minor source which would increase its emissions to the qualifying levels” (i.e. the major 

source thresholds of 100 or 250 tons per year) constitutes a construction of a major 

stationary source subject to major NSR. Under EPA rules, only major modifications to 

sources that already exceed the major source threshold are subject to the program. A 

modification to a minor source is subject to EPA’s NSR program, only if it results in an 

increase greater than or equal to the major source threshold. ADEQ has referred to the 

EPA approach as the “one-time doubling rule,” because it could theoretically allow a 

source close to the major source threshold to double its emissions without being subject 

to major NSR. 

As explained in the NFRM, Arizona law now requires ADEQ’s regulations to be “no 

more stringent than the corresponding federal law that addresses the same subject 

matter.” ADEQ therefore has amended its definition of major source to be consistent with 

EPA’s. ADEQ anticipates that very few, if any, sources will be able to take advantage of 

the one-time doubling rule, because the overwhelming majority of minor sources with 

emissions close the major source threshold are subject to “synthetic minor” permit limits 

designed to insure that they do not exceed the threshold. Under the “source obligation 

rule,” 40 C.F.R. § 52.21(r)(4); A.A.C. R18-2-403(C), R18-2-406(H), the relaxation of 

such a limit allowing the source to exceed the major source threshold would subject the 

source to major NSR. 

Public Participation or Prior Approval for Certain Sources

As explained in the attached guidance document (Appendix D) addressing differences 

between the approved SIP and ADEQ’s Title V permit rules, ADEQ’s current rules allow 

certain changes that require public notice or advance approval under the SIP to proceed 

with a minor permit revision or on seven days advance notice. With the single exception 

noted below, however, these differences are exclusively procedural. In no other instance 

does a SIP rule applicable to these changes impose substantive requirements that go 

beyond current rules. These differences will therefore not interfere with any applicable 

requirement concerning attainment, reasonable further progress, increments or visibility. 

As discussed in the preamble for the NFRM, the new minor NSR provisions assure full 

compliance with federal public participation requirements. The minor differences 

between public participation requirements in the existing SIP and the new program 

therefore should not raise any approvability concerns. 

PSD for Any Modification to a 5-Ton-Per-Year Source of Lead

In contrast to current ADEQ rules, see R18-2-101(11)(c) (as amended), R18-2-406(A), 

the SIP PSD rule, see R9-3-304(A), imposes PSD requirements on any modification, not 

just a major modification, to a source that emits five or more tons of lead per year. 

Consistent with EPA rules, current rules require PSD only for net emissions increases 

that qualify as “significant.” EPA considers emission rates below significant to be “de 

State Implementation Plan Revision 

New Source Review 12 October 2012 
minimis” for major NSR purposes based on a determination that those emissions will 

have a minimal impact on NAAQS compliance. See 73 Fed. Reg. 28321, 28332-33 (May 

16, 2008). The inapplicability of PSD to those changes therefore does not violate section 

110(l). 

RACT for Existing Major Sources in Nonattainment Areas

SIP Rule R9-3-301(B)(2) requires the imposition of reasonably available control 

technology (RACT) for “any major source operating in a nonattainment area for any 

pollutants for which the source is classified as a major source.” There is no such 

requirement in current rules. 

The purpose of this provision appears to be to comply with section 172(c)(1) of the Clean 

Air Act, which requires nonattainment area plans to: 

provide for the implementation of all reasonably available control 

measures as expeditiously as practicable (including such reductions in 

emissions from existing sources in the area as may be obtained through the 

adoption, at a minimum, of reasonably available control technology) .... 

ADEQ’s practice has been to meet the RACT requirement, as well as other Part D 

mandates, through area-specific nonattainment area plans. R9-3-301(B)(2) therefore does 

not serve any purpose, and its repeal will not interfere with any applicable requirement 

concerning attainment, reasonable further progress, increments or visibility. 

Operating Permits

ADEQ’s approved SIP includes rule R9-3-306, which governs the issuance of operating 

permits. As noted above, ADEQ is requesting that EPA approve certain rules, including 

the rules that have replaced R9-3-306, solely for purposes of major and minor NSR. In 

other words, ADEQ is proposing that the approved SIP no longer apply to permit 

requirements applicable solely to existing sources or to modifications that are not subject 

to major or minor NSR. (Of course, much of ADEQ’s program for permitting the 

operation of existing sources will remain part of the state’s approved Title V program.) 

Title I of the Clean Air Act does not include any specific operating permit requirements. 

One rationale for nevertheless including the state’s operating permit rule in the SIP may 

have been to assure continued federal enforceability of conditions that were imposed in 

installation permits and then carried over into operating permits. This function is now 

fulfilled by amended rule R18-2-303(B), which is included in the SIP submission. 

The only other function of operating permits is to assure compliance with existing 

applicable requirements. Since federal applicable requirements, including SIP 

requirements, are federally enforceable regardless of whether they are included in an 

operating permit, the omission of operating permit requirements from the SIP will not 

State Implementation Plan Revision 

New Source Review 13 October 2012 
State Implementation Plan Revision 

New Source Review 14 October 2012 

2.2(e)

2.2(f)

2.2(g)

2.2(h)

2.2(i)

interfere with any applicable requirement concerning attainment, reasonable further 

progress, increments or visibility. 

Modeling information required to support the 

proposed revision, including input data, 

output data, models used, justification of 

model selections, ambient monitoring data 

used, meteorological data used, justification 

for use of offsite data (where used), modes 

of models used, assumptions, and other 

information relevant to the determination of 

adequacy of the modeling analysis. 

Not applicable. 

Evidence, where necessary, that emission 

limitations are based on continuous emission 

reduction technology. 

Not applicable. 

Evidence that the plan contains emission 

limitations, work practice standards and 

recordkeeping/reporting requirements, 

where necessary, to ensure emission levels. 

Not applicable. 

Compliance/enforcement strategies, 

including how compliance will be determined 

in practice. 

Not applicable. 

Special economic and technological 

justifications required by any applicable EPA 

policies, or an explanation of why such 

justifications are not necessary. 

Not applicable. 
Volume 18, Issue 27 Page 1542 July 6, 2012

Arizona Administrative Register / Secretary of State

otices of Final Rulemaking

OTICES OF FIAL RULEMAKIG

OTICE OF FIAL RULEMAKIG

TITLE 18. EVIROMETAL QUALITY

CHAPTER 2. DEPARTMET OF EVIROMETAL QUALITY

AIR POLLUTIO COTROL

Editor’s 
ote: The following 
otice of Final Rulemaking was reviewed per Executive Order 2012-03 as issued by Governor

Brewer. (See the text of the executive order on page 1656.) The Governor’s Office authorized the notice to proceed through the

rulemaking process on April 1, 2009.

[R12-108]

PREAMBLE

1. Article, Part, or Section Affected (as applicable) Rulemaking Action

R18-2-101 Amend

R18-2-102 Amend

R18-2-201 Amend

R18-2-202 Amend

R18-2-203 Amend

R18-2-205 Amend

R18-2-206 Amend

R18-2-210 Amend

R18-2-218 Amend

R18-2-219 Repeal

R18-2-301 Amend

R18-2-302 Amend

R18-2-302.01 New Section

R18-2-303 Amend

R18-2-304 Amend

R18-2-310.01 Amend

R18-2-317 Amend

R18-2-317.01 Amend

R18-2-317.02 Amend

R18-2-319 Amend

R18-2-320 Amend

R18-2-321 Amend

R18-2-324 Amend

R18-2-327 Amend

R18-2-330 Amend

R18-2-334 New Section

R18-2-401 Amend

R18-2-402 Amend

R18-2-403 Amend

R18-2-404 Amend

R18-2-405 Amend

R18-2-406 Amend

R18-2-407 Amend

R18-2-411 Repeal

R18-2-412 New Section

R18-2-502 Amend

R18-2-503 Amend

R18-2-505 Amend

The Administrative Procedure Act requires the publication of the final rules of the state’s agencies. Final rules are those which have

appeared in the Register first as proposed rules and have been through the formal rulemaking process including approval by the Governor’s Regulatory Review Council or the Attorney General. The Secretary of State shall publish the notice along with the Preamble and the

full text in the next available issue of the Register after the final rules have been submitted for filing and publication.

APPENDIX A - NFRM
Arizona Administrative Register / Secretary of State

otices of Final Rulemaking

July 6, 2012 Page 1543 Volume 18, Issue 27

R18-2-512 New Section

R18-2-513 New Section

R18-2-614 Amend

R18-2-701 Amend

R18-2-719 Amend

2. The statutory authority for the rulemaking, including both the authorizing statute (general) and the statutes the

rules are implementing (specific):

Authorizing statutes: A.R.S. §§ 49-104(A)(1) and (A)(10); 49-425(A)

Implementing statutes: A.R.S. § 49-426

3. The effective date of the rules:

August 7, 2012

4. A list of all previous notices appearing in the Register addressing the rules:

Notice of Rulemaking Docket Opening: 14 A.A.R. 1447, April 25, 2008 (expired)

Notice of Rulemaking Docket Opening: 17 A.A.R 2280, November 4, 2011

Notice of Proposed Rulemaking: 17 A.A.R. 2192, November 4, 2011

5. The name and address of agency personnel with whom persons may communicate regarding the rulemaking.

Name: Steven J. Burr

Address: Arizona Department of Environmental Quality 

1110 W. Washington St.

Phoenix, AZ 85007

Telephone: (602) 771-4251 (Any ADEQ number may be reached in-state by dialing 1-800-234-5677, and

asking for that extension.)

Fax: (602) 771-2366

E-mail: sb5@azdeq.gov

6. An agency’s justification and reason why a rule should be made, amended, repealed or renumbered, to include an

explanation about the rulemaking:

Summary.

The purpose of this rulemaking is to update Arizona’s New Source Review (NSR) rules in order to secure their

approval as part of the state implementation plan (SIP) under the federal Clean Air Act. 

The amendments included in the rulemaking consist of extensive revisions to the state’s major NSR program as well

as new NSR requirements for minor sources and minor modifications designed to protect the national ambient air

quality standards (NAAQS). (Whether a source or modification is major or minor depends on the level of emissions,

as described in greater detail below.) As part of the minor NSR requirements, the amendments add a new registration

program for sources with emissions below the current permitting thresholds. In addition to these non-permitted

sources, some sources that require a permit under current rules will be eligible for the less rigorous registration program.

There is currently a significant discrepancy, known as the “SIP gap,” between the NSR rules as set forth in the Arizona Administrative Code and the rules that have been approved by the federal Environmental Protection Agency

(EPA) into the SIP. Once approved, the amended rules will eliminate the SIP gap. 

This rulemaking also includes conforming and technical changes to rules related to NSR, such as requirements for

emissions testing and the general permit program.

Background.

Clean Air Act SR Requirements

Section 110(a)(2)(C) of the federal Clean Air Act (the “Act” or “CAA”), 42 U.S.C. 7410(a)(2)(C), requires SIPs to:

include a program to provide for the ... regulation of the modification and construction of any stationary source

within the areas covered by the plan as necessary to assure that national ambient air quality standards are

achieved, including a permit program as required in parts C and D of this subchapter ... .

Because regulations adopted under this section apply to newly constructed and modified, as opposed to existing,

sources they are commonly referred to as “new source review” programs.

Part C of title I of the Act, 42 U.S.C. 7470-7492, establishes the NSR requirements for major sources that are constructed or modified in areas that have attained the NAAQS for one or more criteria pollutants (ozone, carbon monoxide, nitrogen dioxide, sulfur dioxide, PM10, PM2.5 and lead). Sources that belong to the list of categories set forth in

section 169(1) of the Act, 42 U.S.C. 7479(1), are major if they emit or have the potential to emit 100 or more tons per

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year of a regulated air pollutant. (Sources belonging to these categories are known as “categorical sources” in

ADEQ’s rules.) Other sources are subject to a 250 tons-per-year threshold.

The program required by Part C is known as “Prevention of Significant Deterioration” (PSD) because its purpose is to

prevent air quality in attainment areas from deteriorating to the level of the NAAQS. See CAA § 160. PSD, therefore,

establishes or requires EPA to establish maximum allowable increases, known as “increments,” over existing concentrations of criteria pollutants and requires permit applicants subject to PSD to demonstrate that a new source or modification’s emissions will not result in a violation of the increments or the NAAQS. PSD also requires the installation

of the Best Available Control Technology (BACT), defined as “the maximum degree of reduction of each pollutant

subject to regulation under this chapter emitted from or which results from any major emitting facility, which the permitting authority, on a case-by-case basis, taking into account energy, environmental, and economic impacts and

other costs, determines is achievable for such facility.” 42 U.S.C. 7479(3).

Part D of Title I establishes NSR requirements for major sources and modifications in nonattainment areas. Under

Subpart 1 of Part D, 42 U.S.C. 7501-7509a, a major source is defined as any source that emits or has the potential to

emit 100 tons per year or more of a pollutant for which an area has been designated nonattainment. Subpart 2 of Part

D, 42 U.S.C. 7511-7511f, establishes lower major source thresholds for certain ozone, carbon monoxide and PM10

nonattainment areas. 

Permit applicants subject to Part D must demonstrate that a major source or modification will comply with the lowest

achievable emission rate (LAER) and that reductions in emissions from the same source or other sources will offset

any emissions increases from the source or modification.

In addition to requiring compliance with the specific major NSR requirements of Parts C and D, section 110(a)(2)(C),

7410(a)(2)(C), requires “regulation of the modification and construction of any stationary source within the areas

covered by the plan as necessary to assure that national ambient air quality standards are achieved.” (Emphasis

added.) EPA refers to 110(a)(2)(C) programs that apply to non-major sources and to minor modifications to major

sources as “minor NSR.” 76 Fed. Reg. 38748, 38752 (July 1, 2011).

EPA SR Regulations

EPA has promulgated regulations establishing the elements a state program must contain to satisfy section

110(a)(2)(C) at 40 CFR 51, Subpart I (§§ 51.160-51.166).

Sections 51.165 and 51.166 establish the requirements for nonattainment NSR and PSD programs, respectively.

These rules are highly detailed and restrictive. States seeking approval of major NSR programs must either strictly

conform to these rules or demonstrate that any deviations are at least as stringent as EPA’s program.

Both § 51.165 and 51.166 limit the applicability of major NSR to the construction of a new major source or a “major

modification” to a major source. A major modification is defined as physical or operational change that will result in

both a significant increase and a significant net increase in the emissions of a regulated NSR pollutant. 

For criteria pollutants and their precursors, “significant” is defined as:

As EPA has noted, the “Federal regulations for minor source programs [at 40 CFR 51.160-164] are considerably less

detailed than the requirements for major sources.” 71 Fed. Reg. 48696, 48700 (Aug. 21, 2006). Under the minor NSR

regulations, a state program must contain “legally enforceable procedures” to prevent the construction or modification of a minor source if it will “result in a violation of applicable portions of the control strategy” for compliance

with the NAAQS or “interfere with the attainment or maintenance of a” NAAQS. 40 CFR 51.160. 

A minor NSR program need not apply to all new and modified sources, but it must “identify types and sizes of facilities, buildings, structures, or installations which will be subject to” minor NSR and “discuss the basis for determining

which facilities will be subject to review.” 40 CFR 51.161(e). As EPA has noted:

Applicability thresholds are proper in [a minor NSR program] provided that the sources and modifications

with emissions below the thresholds are inconsequential to attainment and maintenance of the NAAQS.

71 Fed. Reg. 48701. The appropriate threshold levels for NSR applicability are often referred to as “de minimis” levels.

The program must allow a minimum 30-day period to comment on the applicant’s minor NSR application and the

agency’s proposed decision. 40 CFR 51.161. 

Carbon monoxide 100 tons per year (tpy)

Nitrogen oxides 40 tpy

Sulfur dioxide 40 tpy

Volatile organic compounds 40 tpy

Lead 0.6 tpy

PM10 15 tpy

PM2.5 10 tpy

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Arizona’s SR SIP and Current SR Rules

Before ADEQ’s creation in 1987, the Arizona Department of Health Services (ADHS) was responsible for administering Arizona’s air quality program and adopted the state’s original major and minor NSR rules. Arizona implemented NSR through an installation permit program, which required owners and operators to obtain an installation

permit before beginning construction of a new source or a modification to an existing source. See former A.A.C. R9-

3-301 to -305, which, along with the other ADHS rules cited in this discussion, can be found at EPA Region 9’s web

site at:

http://yosemite.epa.gov/R9/r9sips.nsf/Agency?ReadForm&count=500&state=Arizona&cat=Arizona+Department+of+Environmental+Quality-Agency-Wide+Provisions. 

A separate operating permit was required before the owner or operator was allowed to begin operation of the source

or modification. See former R9-3-306.

In 1983, EPA approved the ADHS NSR provisions into the SIP. 48 Fed. Reg. 19879 (May 3, 1983). 

The SIP Gap

EPA last approved revisions to the Arizona NSR SIP in 1988. See 53 Fed. Reg. 30220 (Aug. 10, 1988). Since the

amendments last approved by EPA were adopted, the state has transferred authority over the program to ADEQ and

has made substantial revisions to the program. 

Most significantly, in 1992 through 1993, the state adopted legislation, followed by conforming rule amendments, to

move from the old installation and operating permit program to a “unitary” program that authorizes both construction

and operation in a single permit. NSR requirements for new sources are now enforced as part of the issuance of a single permit that also ensures compliance with all other applicable requirements of state and federal air quality laws.

For major sources, these permits are designed to comply with title V of the Act, as well as Parts C and D of title I.

Major modifications subject to major NSR now require a significant revision to the permit for an existing source,

rather than a new installation permit. Other modifications that formerly required an installation permit may now proceed under either a significant or minor permit revision.

In addition to adopting the unitary permit program, ADEQ also has updated its NSR rules to incorporate:

• the PM10 and PM2.5 NAAQS, 

• the PM10 increments, 

• the nitrogen dioxide increments, 

• the 1997 eight-hour ozone NAAQS,

• the “WEPCO” rule redefining the method for determining whether a modification to an electric generating unit is

major, and 

• various technical amendments.

None of these changes is included in the approved NSR SIP for the state.

Under federal law, ADEQ remains obligated to continue enforcing the old NSR program until EPA approves the new

one. Fortunately, the new program is in most cases more stringent than the old, so that compliance with current rules

is largely sufficient to assure compliance with the approved NSR SIP. There are a few instances, however, in which

the old rules require review procedures that go beyond the current program. ADEQ has had to issue guidance explaining that in these cases the Department will apply the approved SIP, rather than the rules currently published in the

state’s administrative code. 

It would obviously be preferable for the requirements of the SIP and the current rules to match. The Department is,

therefore, seeking through these rule amendments to eliminate the SIP gap for the permit program. 

EPA Amendments to Major SR

ADEQ has attempted to secure EPA approval of prior versions of its NSR rules, but so far without success. Since

ADEQ last updated its NSR rules, EPA has adopted substantial revisions to the major NSR program, making additional amendments necessary before approval EPA can be secured. 

Most significantly, on December 31, 2002, EPA promulgated comprehensive amendments, known as “NSR reform,”

to the regulatory methods for determining whether a major modification has occurred. 67 Fed. Reg. 80186. On June

24, 2005, the United States Court of Appeals for the D.C. Circuit vacated some of the rule changes, including exemptions for modifications to certain “clean units” and modifications that qualify as “pollution control projects.” 
ew

York v. EPA, 413 F.3d 3 (D.C. Cir 2005). The remaining rules, which remain in effect, consist of changes to the

method for calculating the emissions increase from a modification to an existing emissions unit and provisions for

“Plantwide Applicability Limits” (PALs).

The determination of whether a modification to an existing unit will result in a significant emissions increase entails a

comparison between “baseline” (i.e. existing) emissions and future emissions after the modification is complete. (The

installation of a new unit is generally deemed to result in an increase equal to the unit’s potential to emit.) NSR

reform established a new method for determining baseline emissions and a new option for determining future emissions for modifications to existing units.

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Under pre-NSR Reform rules, baseline emissions were generally calculated using the actual emissions for the twoyear period immediately preceding the proposed change. 67 Fed. Reg. 80188. As EPA has noted, regulated industries

complained that this method provided only “limited ability to consider the operational fluctuations associated with

normal business cycles.” 67 Fed. Reg. 80191. The NSR Reform amendments therefore allow the use of any consecutive 24-month period during the ten-year period prior to the change to establish baseline actual emissions. (A fiveyear period is used for EGUs.)

Before NSR Reform, an existing unit’s future, post-modification emissions were normally deemed to equal the unit’s

potential to emit (PTE). The definition of PTE assumes that a unit “will operate at its full capacity year round,” unless

the source’s permit includes “enforceable restrictions on the unit’s operation.” This was problematic, because “using

PTE as a measure of post-change emissions automatically attributes all possible emissions increases to the change.”

In many cases, however, the unit might “function essentially as it did before the change” and produce no increase or a

less-than-significant increase in actual emissions. 67 Fed. Reg. 80193-94. 

After NSR Reform, a source’s owner or operator may now elect to use an existing unit’s “projected actual emissions,”

rather than its PTE, to determine future emissions. Unlike PTE, a unit’s projected actual emissions take into account

historical operational data and exclude emissions that could have been accommodated before the modification. 

According to EPA, this new test for calculating the emissions increase from a modification to an existing unit, known

as the “actual-to-projected-actual” test, will produce benefits for regulated industries, the environment and state and

local agencies:

By allowing you [i.e., regulated entities] to use today’s new version of the actual-to-projected-actual applicability test to evaluate modified existing emissions units, we expect that fewer projects will trigger the

major NSR permitting requirements. Nonetheless, we believe that the environment will not be adversely

affected by these changes and in some respects will benefit from these changes. The new test will remove

disincentives that discourage sources from making the types of changes that improve operating efficiency,

implement pollution prevention projects, and result in other environmentally beneficial changes. Moreover,

the end result is that State and local reviewing authorities can appropriately focus their limited resources on

those activities that could cause real and significant increases in pollution.

67 Fed. Reg. 80192.

The NSR Reform rule also provides that if there is a “reasonable possibility” that modifications to existing emissions

units will produce a significant emissions increase of a regulated NSR pollutant, and the owner or operator elects to

use the actual-to-projected-actual test, the modifications will be subject to monitoring, recordkeeping and reporting

obligations. 

The initial NSR Reform rule did not define “reasonable possibility.” The court in 
ew York v. EPA held that without a

definition or other clarification, the rule failed to provide regulated entities or agencies adequate notice of when these

obligations are triggered. In response, EPA issued amendments to its major NSR rules defining the term. 72 Fed. Reg.

72607 (Dec. 12, 2007). Although EPA subsequently granted a petition to reconsider the definition, it did not stay the

provision, which therefore remains in effect.

The other major element of NSR Reform is the PAL, which allows major sources to avoid major NSR by accepting

and complying with a source-wide cap on emissions. PALs are set for each regulated NSR pollutant at a level equal to

baseline actual emissions plus the significant level for the pollutant. Baseline actual emissions are calculated in the

same way as described above for calculating emission increases from modifications to existing emission units. A

source may generally make any changes it wants without triggering major NSR, so long as plantwide emissions after

the change remain below the PAL. PALs last for ten years and are renewable.

EPA believes that regulated entities “will benefit from the PAL option because [they] will have increased operational

flexibility and regulatory certainty, a simpler NSR applicability approach, and fewer administrative burdens.” 67 Fed.

Reg. 80206. Based on a review of six flexible permit pilot projects, EPA concluded that the environment would also

benefit. According to the agency, “PALs will over time tend to shift growth in emissions to cleaner units, because the

growth will have to be accommodated under the PAL cap.” 67 Fed. Reg. 80207.

Since the last ADEQ update, EPA also has made numerous revisions to the NAAQS. The NAAQS are not technically

part of EPA’s NSR regulations, but in order to be approvable, a state NSR program must allow for enforcement of the

current version of these standards. See, e.g., 40 CFR 51.166(k)(1). Since state law precludes ADEQ from incorporating future amendments to federal law, see State v. Williams, 119 Ariz. 595, 583 P.2d 251, 254-55 (1978); A.A.C. R18-

1-114(B), the Department’s practice has been to adopt its own version of the NAAQS into Chapter 2, Article 2 and

then to refer to those standards in its major NSR rules. See, e.g., A.A.C. R18-2-406(A)(5)(a). The state must therefore

update Article 2 to reflect the revised NAAQS.

Finally, EPA has made numerous other revisions that must be included in the Arizona program, such as the adoption

of PM2.5 increments and significant impact levels and significant monitoring concentrations for PM2.5.

Stakeholder Process

These revisions to the state NSR program are the product of an extensive stakeholder review process that lasted

approximately 2 1/2 years. 

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The process included an initial series of public stakeholder meetings in 2008, during which ADEQ presented and

received comments on concept papers and then proposed rule language for both minor and major NSR. ADEQ

secured the services of a consultant, RTP Environmental Associates, Inc., to assist it with this stage of the stakeholder

process.

When these meetings concluded, it was clear that there was still considerable disagreement about the appropriate

scope and elements of the minor NSR program. ADEQ therefore conducted, in 2009, a series of “mini-stakeholder”

meetings with a limited number of designated representatives from the regulated community, environmental organizations and Maricopa, Pima and Pinal counties, to attempt to resolve these differences. As a result of these meetings,

ADEQ made numerous changes to the minor NSR proposal, which the Department believes will reduce the burden

the program imposes on the regulated community while still meeting the requirements of section 110(a)(2)(C) of the

Clean Air Act, 42 U.S.C. 7410(a)(2)(C).

Finally, ADEQ presented these changes, first in the form of concept papers and then in rule language, at another

series of public stakeholder meetings conducted in 2010. Comments received at these meetings resulted in additional

streamlining changes to the proposal. 

Revisions to State Major SR Program

HB 2617, Laws 2010, Ch. 309,which became law on July 29, 2010, added the following restriction to ADEQ’s powers and duties as set forth in A.R.S. § 49-104(A):

17. Unless specifically authorized by the legislature, [the department shall] ensure that state laws, rules,

standards, permits, variances and orders are adopted and construed to be consistent with and no more

stringent than the corresponding federal law that addresses the same subject matter. This provision

shall not be construed to adversely affect standards adopted by an Indian tribe under federal law.

EPA’s major NSR regulations are quite detailed and restrictive. They establish a specific body of “corresponding federal law that addresses the same subject matter” as the major NSR amendments. Accordingly, ADEQ believes that

HB 2617 imposes a duty on the Department to ensure that the major NSR amendments are consistent with and no

more stringent than the corresponding EPA regulations. 

Consistent with that obligation, ADEQ is adopting major NSR amendments that are substantially identical to the EPA

changes described above. Specifically, ADEQ has eliminated a provision (R18-2-401(9)(c)-(d)) from the existing

definition of major source because it was more stringent than the corresponding federal definition and has dropped

proposals presented to the stakeholders to increase the stringency of some of the NSR Reform provisions. 

Arizona Minor SR Requirements

The rule amendments relating to minor NSR included in this rulemaking are designed to address two primary deficiencies: (1) applicability thresholds that EPA Region 9 has determined to be unapprovable and (2) lack of explicit

procedures designed “to assure that national ambient air quality standards are achieved,” as required by CAA §

110(a)(2)(C). ADEQ’s current minor source permitting rules require the inclusion of “[e]nforceable emission limitations and standards, including operational requirements and limitations that ensure compliance with all applicable

requirements.” A.A.C. R18-2-306(A)(1). They therefore satisfy the requirement in EPA’s minor NSR rules to assure

that minor sources do not violate “applicable portions of the control strategy.”

Applying the restrictions imposed by HB 2617 to the minor NSR provisions of this rulemaking is more problematic

than in the case of major NSR. As explained above, EPA’s minor NSR rules, in contrast to those governing major

NSR, are extremely general. They afford the regulatory agency “a broad degree of discretion in developing a program

to regulate new and modified minor stationary source construction activities....” 71 Fed. Reg. 48696, 48700 (Aug.

21, 2006). The generality and open-endedness of the requirements make it difficult to determine with any precision

whether the state rules are more stringent than the corresponding federal law. 

Since the beginning of the stakeholder process, however, ADEQ has taken a cautious approach and has attempted to

develop a minor NSR program that would meet the minimum requirements necessary to secure approval under CAA

§ 110(a)(2)(C). ADEQ believes this approach is justifiable because the contribution of minor sources to ambient concentrations of criteria pollutants in areas under state jurisdiction appears to be minimal. (The new registration program, discussed below, will supply the Department with better data to evaluate the validity of this premise.) 

Setting Applicability Thresholds

Under current ADEQ rules, permits are required for sources with the potential to emit without controls, significant

levels of regulated air pollutants, and significant permit revisions are required for modifications that increase a

source’s emissions of a regulated air pollutant by a significant amount. A.A.C. R18-2-302(B)(2)(a)(iii), R18-2-

319(A)(7), R18-2-320(B)(3). In other words, the significant levels serve as the “de minimis” thresholds for the program.

In a May 22, 1996, letter addressing the adequacy of ADEQ’s permit program, EPA Region 9 stated that the agency

did “not feel that the significance levels represent an acceptable threshold for applying the basic preconstruction

requirements” of minor NSR and that “ADEQ should require preconstruction review and permitting for some subset

of sources and modifications with potential emissions less than the significance levels.” The agency suggested that

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“ADEQ could develop a source registration program for smaller facilities that would achieve the same environmental

benefit as a traditional permitting program.”

As part of its assessment of possible thresholds, ADEQ asked its consultant to prepare a comparison of the source

thresholds of minor NSR programs for nearby western states with air quality issues similar to the areas under ADEQ

jurisdiction. (California was not included, because of the unique severity of the nonattainment problems in that state.)

As the following summary of the consultant’s report shows, the minor NSR source thresholds for these states (given

in tons per year) are, with the exception of New Mexico’s, substantially lower than ADEQ’s:

*EPA’s significant level for PM2.5 is not yet included in ADEQ’s definition of significant but is being added by this

rulemaking.

The thresholds adopted in EPA’s minor NSR rules for Indian Country, which were proposed on August 21, 2006, 71

Fed. Reg. 48696, and promulgated on July 1, 2011, 76 Fed. Reg. 38748, provide another point of comparison. Under

those rules, the minor NSR thresholds for both new sources and modifications are as follows:

76 Fed. Reg. 38758. Again, these thresholds are substantially lower than ADEQ’s current minor NSR thresholds. On

the other hand, EPA acknowledged that the rule was “not intended to establish a new set of minimum criteria that a

Tribe or a state would need to follow in developing its own minor source permitting program.” Thus, the thresholds in

the minor NSR program for Indian Country are instructive, but not binding.

To assess the impact of the proposed thresholds in the Indian Country rule, EPA conducted a source distribution analysis using data from the National Emissions Inventory. The analysis concluded that the percentage of sources that

would be exempt under the proposal would be relatively large when compared to the percentage of exempt emissions.

In other words, the proposed thresholds would be efficient in terms of emissions regulated per regulated source.

According to EPA, the analysis provided excellent “evidence that sources with emissions below the proposed minor

NSR thresholds will be inconsequential to attainment and maintenance of the NAAQS.”

To develop thresholds for the state minor NSR program, ADEQ applied a similar approach to a local data set. 

During the stakeholder process, ADEQ proposed two alternative scenarios for minor NSR thresholds:

State PM10 PM2.5 Ox SO2 CO VOC Lead

Arizona 15 10*40 40 100 40 0.6

Colorado (attainment) 5 5 10 10 10 5 0.1

Colorado

(nonattainment) 1 1 5 5 5 2 0.1

Nevada 2 2 2 2

Clark County Nevada 5 10 25 25 10 0.3

New Mexico 25 25 25 25 25 25 25

Utah 5 5 5 5 5

Pollutant Threshold for nonattainment areas 

(TPY)

Threshold for attainment areas 

(TPY)

CO 5 10

NOx5 10

SO25 10

VOC 2 5

PM10 1 5

PM2.5 0.6 3

Lead 0.1 0.1

Pollutant Scenario 1

(1/2 Significant Level)

Scenario 2

(1/4 to 1/2 Significant Level)

CO 50 25

NOx

20 10

SO220 10

VOC 20 10

PM10 7.5 5

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ADEQ then asked RTP to use the Maricopa County 2006 emissions inventory to analyze the impact of these two scenarios. Because of the severity of the air quality problems in the Phoenix Metropolitan Area, Maricopa County has

for some time employed much lower permitting thresholds than ADEQ and therefore has a much more complete

inventory of smaller emission sources.

The results of the analysis were as follows:

Both scenarios result in a relatively large percentage of emissions being subject to regulation compared to the percentage of sources brought into the program. Based on the Maricopa County data, using Scenario 2 rather than Scenario 1 would result in considerable gains in coverage of carbon monoxide and sulfur dioxide emissions. Stationary

source emissions of carbon monoxide, however, are dwarfed by mobile source emissions and do not contribute significantly to nonattainment of the carbon monoxide NAAQS. In areas under state jurisdiction, the sources that could

contribute to noncompliance with the sulfur dioxide NAAQS are well-defined and consist of large industrial sources

already subject to the permitting program. For purposes of minor source regulation, Scenario 2 does not offer any

substantial benefits over Scenario 1.

Moreover, ADEQ believes that current economic uncertainties and constraints on state resources favor caution in

expanding the scope of the state’s new source review program. In addition, the Scenario 1 thresholds will bring

ADEQ’s program more in line with those of neighboring states, as summarized above. ADEQ has therefore decided

to use Scenario 1, or one-half the significant levels, rather than Scenario 2, as the applicability thresholds for minor

NSR. 

To further reduce the burdens of the new minor NSR program, sources with emissions between the Scenario 1 levels

and the current thresholds (i.e. between one-half significant and significant) will not require a permit, but will instead

be subject to a new, streamlined registration program. As described in greater detail below, ADEQ will use the registration program to screen these sources for potential interference with the NAAQS and to ensure they comply with

the control strategy, thus satisfying the requirements of minor NSR. 

How Applicability Works

The Scenario 1 thresholds (defined in the rules as the “permitting exemption thresholds”) will apply both to new

sources and to modifications. New sources with the potential to emit, without controls, criteria pollutants or their precursors (known as “regulated minor NSR pollutants”) at a rate between permitting exemption thresholds and the significant level will be subject to the new registration program. (ADEQ will screen these sources for possible

application of minor NSR, as described below). A modification at any permitted source that increases its potential to

emit a regulated minor NSR pollutant by more than one-half the significant level will be subject to minor NSR. 

The use of emissions decreases to reduce the net emissions increase from a modification in order to avoid minor NSR

applicability is not allowed, except in the case of the replacement of an existing emission unit with a new one. See

Response to Comment 37 in item 11 of this preamble.

The following tables describe the applicability of the various NSR programs in greater detail. For purposes of the

tables, a regulated NSR pollutant is any criteria pollutant, any precursor for a criteria pollutant and pollutants subject

to certain other CAA requirements, such as hydrogen sulfide and total reduced sulfur. Regulated minor NSR pollutants consist solely of the criteria pollutants and their precursors.

New Source:

Lead 0.3 0.3

Scenario 1

CO Ox Pb PM10 SO2 VOC

% of emissions regulated 34.86 78.38 0.00 79.47 22.19 59.96

% of sources regulated 2.06 7.60 0.00 12.57 0.59 8.85

Scenario 2

CO Ox Pb PM10 SO2 VOC

% of emissions regulated 56.86 85.65 0.00 84.22 72.57 75.89

% of sources regulated 5.00 13.16 0.00 15.52 4.13 16.49

Potential to Emit Applicable Program

≥ major source threshold for at least one regulated

NSR pollutant*

≥ significant for any other regulated NSR pollutant

Major NSR

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*Applicable thresholds depend on source category and attainment status and classification of area in which source is

located.

Modification:

*Both a significant increase and a significant net increase must occur for major NSR to apply.

Once a source’s emissions of a single pollutant cross the necessary threshold, NSR applicability is determined on a

pollutant-by-pollutant basis. It is therefore possible for multiple pollutants to be subject to NSR and for a modification to a major source to be subject to both minor and major NSR. 

If a pollutant is subject to major NSR, minor NSR does not apply. If a source is subject to minor NSR, and therefore

requires a Class I or II permit, registration does not apply. Thus, an applicant should evaluate applicability in the

order indicated in the tables, from the most stringent to the least stringent program.

The extent to which controls (which may include operational restrictions, such as limits on throughput or hours of

operation) are considered in determining potential to emit for a source or modification varies with the program and

the type of activity. The methods for limiting a source’s potential to emit—and thereby avoiding NSR, permitting or

registration requirements—are summarized in this table:

Protection of the AAQS

The rule amendments provide two options for complying with the section 110(a)(2)(C) requirement to ensure that the

NAAQS are protected. 

I. A source subject to the program may elect in its permit application to install Reasonably Available Control Technology (RACT). See new R18-2-334(C)(1). The rule amendments define RACT (in R18-2-101) to mean control techniques that ADEQ determines to be reasonably available taking into account the “necessity of imposing the controls

≥ significant for at least one regulated NSR pollutant

(or source is otherwise required to obtain class I or

II permit)

≥ 1/2 significant (permitting exemption threshold)

for any regulated minor NSR pollutant 

Minor NSR

≥ 1/2 significant for any regulated minor NSR pollutant Registration; screen for minor NSR applicability

Existing Source PTE Emission Increase Test Increase Applicable Program

≥ major source threshold for any regulated

NSR pollutant

actual-to-projected-actual

≥ significant for any

regulated NSR pollutant*

Major NSR

≥ major source threshold for any regulated

NSR pollutant

potential-to-potential

≥ 1/2 significant for any

regulated minor NSR

pollutant

Minor NSR

≥ significant for any

regulated NSR pollutant (or otherwise

required to obtain

permit)

potential-to-potential

≥ 1/2 significant for any

regulated minor NSR

pollutant

Minor NSR

≥ 1/2 significant for any

regulated minor NSR

pollutant

potential-to-potential

≥ 0.3 TPY for lead or

2.5 TPY for any other

regulated minor NSR

pollutant

Revised registration

Program Type of Activity Limits Considered

Major NSR Construction of source or modification Only limits that are enforceable by permit

Minor NSR Construction of source

Limits that are enforceable by permit

Limits that are enforceable by an elective limit

or control in a registration (see below)

Minor NSR Modification Only limits that are enforceable by permit

Registration Construction of source or modification None

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in order to attain and maintain” a NAAQS, the “social, environmental, energy and economic impact of the controls,”

control technology used by similar sources and the “capital and operating costs and technical feasibility of the controls.” In the minor NSR rule for Indian Country, EPA concluded that a control technology requirement could fulfill

the requirements of section 110(a)(2)(C). 76 Fed. Reg. 38761.

In order to streamline the RACT determination process, the rules establish a number of RACT safe harbors. See new

R18-2-334(D)(2). If a permit applicant proposes to comply with the most recently adopted of any of the standards or

guidelines listed in the rule, such as RACT standards established by state or county rule, ADEQ shall accept the proposal as meeting the RACT requirement. If no such standard or guideline is available or the source elects not to use a

safe harbor, a case-by-case determination of RACT will be required.

II. The source may choose to demonstrate through an air quality impact analysis that emissions from the source or

minor NSR modification will not interfere with attainment or maintenance of a NAAQS. See new R18-2-334(C)(2).

The source owner or operator may elect to have ADEQ perform an initial SCREEN model to assess the source or

modification’s impact on air quality. If the SCREEN model, which employs conservative assumptions and tends to

over-predict ambient impacts, demonstrates no threat to a NAAQS, then the owner or operator has satisfied the

requirements of minor NSR for the pollutant modeled. Otherwise, more refined modeling will be required. An owner

or operator can demonstrate no threat to the NAAQS either by showing that the ambient impact from the source or

modification will be below the significant impact levels defined in R18-2-101 or that the ambient impact, combined

with existing ambient concentrations, will not exceed a NAAQS.

When an owner or operator elects to pursue the first option, installation of RACT, ADEQ may nevertheless require

performance of an ambient air quality impact analysis, if the Department concludes there is reason to believe the

source or modification could interfere with attainment or maintenance of the NAAQS. ADEQ believes this safeguard

is necessary to assure that the state’s minor NSR program is approvable under section 110(a)(2)(C).

Public Review

All permit applications for new sources are already subject to public review and comment under A.A.C. R18-2-330.

Thus, the public will always have an opportunity to review and comment on minor NSR for new sources. 

Permit revisions for modifications subject to minor NSR will also require public review with two exceptions: (1) if

the applicant adopts a safe harbor RACT standard or guideline, obviating the need for a case-by-case RACT determination or (2) if the SCREEN model demonstrates that the modification’s ambient impact, combined with existing

concentrations, is less than 75% of the NAAQS. ADEQ believes that in both of these cases the potential utility of any

public comments will be minimal.

Registration Program

Rationale

The rule amendments provide that sources with emissions between the new permitting exemption thresholds (i.e.

one-half the significant levels) and the existing permit threshold (i.e. the significant levels) shall not be subject to the

existing Class II permit program for minor sources. The Class II program is in most respects identical to the Class I

program for major sources subject to title V of the CAA. ADEQ believes that the complex application and compliance requirements of those programs would prove overly burdensome for the small businesses that are likely to be

subject to regulation under the lower thresholds. 

Instead, ADEQ is adopting a new registration program for these smaller sources. This program will enable ADEQ to

meet EPA Region 9’s objections to the existing thresholds while minimizing the burden imposed on currently unpermitted sources. In addition, as discussed below, the registration program will allow some smaller sources that currently require a permit to obtain a registration instead, thus reducing the existing regulatory burden.

Registration Requirements

The application and processing procedures for the registration program are highly streamlined as compared to the

Department’s existing permitting procedures. See new R18-2-302.01(A), (B). Among other things, a registration

application will be required to include the source’s potential to emit regulated minor NSR pollutants. Gathering this

information from registrations will help the Department make better-informed decisions on the appropriate scope of

minor NSR, as well as other regulatory issues involving small stationary sources, in the future.

Except for registrations that include elective limits (see below) the contents of a registration will be limited to a list of

emissions units, the applicable requirements for the emissions units, a requirement to retain records and a requirement

to make records available for inspection. See new R18-2-302.01(E).

At the registrant’s option, a registration may include elective limits or controls that limit the source’s potential to

emit. See new R18-2-302.01(F). The rule identifies specific types of limits and controls that are eligible for inclusion

in a registration as well as the monitoring and recordkeeping requirements necessary to assure compliance. A registrant that accepts elective limits or controls in its application must submit an annual compliance report to ADEQ.

(Periodic reporting is not otherwise required for sources subject to registration.) 

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It should be noted that elective limits or controls are not considered in determining whether a source is subject to registration, since the limits or controls must be included in a registration to be effective. The limits, however, are considered in other contexts and provide a number of advantages to the registrant, as described below.

Although the primary purpose of the registration program is to provide a minor NSR screening program for smaller

sources, ADEQ is requiring registration for both new and existing sources. ADEQ believes subjecting existing

sources to the program will:

• Level the regulatory playing field for new and existing sources;

• Help prevent inadvertent violations of minor NSR requirements;

• Provide ADEQ with more complete data on small source emissions; and

• Improve small source awareness of and compliance with existing regulatory requirement.

Integration with Minor SR Requirements

New sources subject to registration will not automatically require minor NSR. Rather, the rules enable ADEQ to use

the registration program as a means of screening these smaller sources for potential minor NSR applicability.

Specifically, new R18-2-302.01(C) provides for ADEQ review of registrations to determine whether the source may

interfere with attainment or maintenance of the NAAQS. If ADEQ determines, based on factors listed in the rule, that

interference is possible, the Department will perform a SCREEN model run. If the modeling finds, based on the conservative assumptions inherent in the SCREEN model, that interference may occur, ADEQ will deny the registration

and require the applicant to submit an application for a permit subject to the minor NSR requirements described

above. Thus, the registration program will assure compliance with section 110(a)(2)(C) of the Act for sources with

emissions below existing permitting thresholds, without subjecting all of those sources to the existing permit program.

ADEQ review of registrations for possible interference with NAAQS will be mandatory in some cases and discretionary in others. Review will be mandatory for sources with the potential to emit any regulated minor NSR pollutant

above the permitting exemption threshold and discretionary for all other sources. In determining potential to emit for

this purpose, elective limits or controls will be considered. 

Review is mandatory for sources above the permitting exemption threshold because that has been determined to be

the de minimis threshold for the minor NSR program. Discretionary review serves as a backstop for the minor NSR

program and a means of evaluating whether the de minimis thresholds have been set at the appropriate level. 

Public Participation

New registered sources with the potential to emit, taking elective limits or controls into account, any regulated minor

NSR pollutant above the permitting exemption threshold, will be subject to the public participation requirements of

R18-2-330. This will provide the public with the opportunity to comment on ADEQ’s mandatory review of new registrations for NAAQS compliance and therefore satisfy the requirements of 40 CFR 51.161.

Exemptions from Permitting

ADEQ’s existing permit rules require a source subject to a new source performance standard (NSPS) or national

emission standard for hazardous air pollutants (NESHAP) adopted under section 111 or 112 of the Act to obtain a

Class II permit, regardless of whether the source’s emissions exceed the significant levels. In the course of administering the program, ADEQ has found that imposing full permit requirements on most of the small sources subject to

this provision is unduly burdensome. ADEQ is therefore moving these sources from the permit program to the registration program. As a safeguard, the rule gives ADEQ the authority to require individual NSPS or NESHAP sources

to obtain a permit rather than a registration.

ADEQ is also exempting certain NSPS and NESHAP sources with emissions below the permitting exemption thresholds from registration as well as permitting.

Finally, ADEQ is allowing sources to use elective limits or controls to avoid the need to obtain a permit. If a source

that would otherwise require a permit, because its uncontrolled emissions of a regulated pollutant exceed the significant level, registers and adopts an elective limit or control that ensures its potential to emit will remain less than significant, the source becomes exempt from permitting under the rules.

County SR Programs

Three Arizona counties—Maricopa, Pima and Pinal—have exercised their authority to adopt air quality control programs, including NSR regulations, under A.R.S. §§ 49-402(B) and 49-471 to 49-516. These counties will likely be

required to amend their current NSR rules to reflect the changes made in this rulemaking. The counties’ NSR rules,

however, need not be identical to ADEQ’s. Rather, county program are subject to a number of legal requirements.

First, all county regulations must be “at least equal to or more restrictive than those adopted by” ADEQ. A.R.S. § 49-

479(A). 

Second, under A.R.S. § 49-479(C), a county:

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may adopt or amend a rule, emission standard, or standard of performance that is as stringent or more stringent than a rule, emission standard or standard of performance for similar sources adopted by the director

only if the county complies with the applicable provisions of section 49-112.

Section 49-112(A) in turn provides that a county:

may adopt a rule, ordinance or other regulation that is more stringent than or in addition to a ... rule adopted

by [ADEQ] ... if all of the following conditions are met:

1. The rule, ordinance or other regulation is necessary to address a peculiar local condition.

2. There is credible evidence that the rule, ordinance or other regulation is either:

(a) Necessary to prevent a significant threat to public health or the environment that results from a peculiar

local condition and is technically and economically feasible.

(b) Required under a federal statute or regulation, or authorized pursuant to an intergovernmental agreement

with the federal government to enforce federal statutes or regulations if the county rule, ordinance or other

regulation is equivalent to federal statutes or regulations.

3. Any fee or tax adopted under the rule, ordinance or other regulation will not exceed the reasonable costs

of the county to issue and administer that permit or plan approval program.

Third, county “procedures for the review issuance, revision and administration of permits” must meet one of two statutory standards. Procedures for sources subject to Title V of the Clean Air Act must be “substantially identical” to

ADEQ’s procedures. Procedures for sources that are not subject to Title V must “impose no greater procedural burden

on the permit applicant than” ADEQ’s permit rules. A.R.S. § 49-480(B).

Finally, amendments to county NSR rules that are part of the state implementation plan must be approved by EPA

before they may take effect. In order to secure EPA approval, a county must demonstrate to EPA that the amendments

would not “interfere with any applicable requirement concerning attainment [of the NAAQS] and reasonable further

progress [toward attainment of the NAAQS], or any other applicable requirement of” the Clean Air Act. 42 U.S.C.

7410(l).

Section by Section explanation of rule changes:

R18-2-101 Add and amend definitions used in major and minor NSR programs, as well as definitions used

in related permit rules. Add definitions from statutes, rather than incorporating by reference, in

order to facilitate EPA approval of rules into SIP.

R18-2-102 Update reference to test methods used to assure compliance with permit conditions as well as

other applicable requirements. 

R18-2-201 Update particulate matter ambient air quality standards to reflect latest EPA revisions. Deleted

annual PM10 standard as required by HB 2617.

R18-2-202 Update sulfur dioxide ambient air quality standards to reflect latest EPA revisions.

R18-2-203 Update ozone ambient air quality standards to reflect latest EPA revisions.

R18-2-205 Update nitrogen dioxide ambient air quality standards to reflect latest EPA revisions.

R18-2-206 Update lead ambient air quality standards to reflect latest EPA revisions.

R18-2-210 Update incorporation by reference of attainment designations used in NSR programs.

R18-2-218 Add PM2.5 increments adopted by EPA.

R18-2-219 Repeal outdated method for determining NAAQS violations.

R18-2-301 Add and amend definitions used in minor NSR and registration programs, as well as definitions used in related permit rules. Add definitions from statutes, rather than incorporating by

reference, in order to facilitate EPA approval of rules into SIP.

R18-2-302 Amend permit applicability provisions to be consistent with new registration program. Add

new exemptions for certain NSPS and NESHAP sources.

R18-2-302.01 New registration program described above.

R18-2-303 Update transition provisions to reflect other amendments and to eliminate outdated sections.

R18-2-304 Amend application processing procedures to reflect minor NSR program. Eliminate outdated

provisions. Clarify other provisions to in response to stakeholder and EPA concerns. 

R18-2-310.01 Add option for registered sources to report excess emissions in order to be eligible for affirmative defense.

R18-2-317 Add minor NSR applicability as additional gatekeeper for changes that may proceed without

permit revision.

R18-2-317.01 Add reference to minor NSR to list of changes requiring permit revision.

R18-2-317.02 Fix cross-reference.

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7. A reference to any study relevant to the rule that the agency reviewed and either relied on or did not rely on in its

evaluation of or justification for the rule, where the public may obtain or review each study, all data underlying

each study, and any analysis of each study and other supporting material:

An electronic or printed version of the following materials relied on in the evaluation and justification for this proposed rule may be obtained from the agency contact identified in item 5 above:

E-mail from Al-Rayes to Baggiore re Modeling Costs (Dec. 21, 2010)

E-mail from Al-Rayes to Baggiore re Modeling Run Cost (Sep. 29, 2011)

Maricopa County 2006 Data Analysis (RTP 2008)

Memorandum from William T. Harnett Director, Air Quality Policy Division to Regional Air Division Directors re

RACT Qs & As – Reasonably Available Control Technology (RACT): Questions and Answers (EPA May 18,

2006)

Revised Minor NSR Thresholds Comparison (RTP 2008)

8. A showing of good cause why the rule is necessary to promote a statewide interest if the rule will diminish a previous grant of authority of a political subdivision of this state:

Not applicable

9. A summary of the economic, small business, and consumer impact:

The following discussion addresses each of the elements required for an economic, small business and consumer

impact statement (ESBCIS) under A.R.S. § 41-1055.

R18-2-319 Add minor NSR applicability as additional gatekeeper for changes eligible for minor permit

revision. Eliminate outdated provision.

R18-2-320 Add changes subject to minor NSR to list of changes requiring significant revisions. Eliminate

outdated provision.

R18-2-321 Add references to registrations to rule allowing permit reopening, reissuance or termination.

Eliminate outdated provision.

R18-2-324 Add provisions for terminating portable source permits when a new permit is issued by another

jurisdiction.

R18-2-327 Update references to AP-42 emission factors, as requested by EPA.

R18-2-330 Conforming changes to public review procedures.

R18-2-334 New Minor NSR rule, as described above.

R18-2-401 Add and amend definitions used in major NSR program.

R18-2-402 Revise applicability of major NSR to be consistent with NSR Reform.

R18-2-403 Revise nonattainment major NSR rule to be consistent with EPA requirements.

R18-2-404 Revise nonattainment NSR offset rule to be consistent with EPA requirements.

R18-2-405 Revise nonattainment major NSR rule for certain ozone nonattainment areas to be consistent

with EPA requirements.

R18-2-406 Revise PSD (major NSR for attainment areas) rule to be consistent with EPA requirements.

R18-2-407 Add significant monitoring concentration for PM2.5.

R18-2-411 Repeal outdated and probably unapprovable rule relating to the restart of major sources of sulfur dioxide in nonattainment areas.

R18-2-412 Add PAL provision described above.

R18-2-502 Add provision allowing imposition of minor NSR RACT in general permit.

R18-2-503 Eliminate outdated provisions relating to time-frames. 

R18-2-505 Clarify renewal requirements.

R18-2-512 Establish which changes at facilities granted coverage under general permit require authorization.

R18-2-513 Clarify obligations of portable sources subject to general permit.

R18-2-614 Update test methods.

R18-2-719 Update test methods.

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An identification of the rulemaking.

The rulemaking addressed by this ESBCIS is the adoption of amendments designed to bring ADEQ’s New Source

Review (NSR) rules into conformance with federal requirements. In particular, this ESBCIS covers the adoption of

new rules (R18-2-302.01 and R18-2-334) designed to conform to federal requirements for minor NSR and rule

amendments designed to incorporate recent changes to EPA’s major NSR regulations. These rule changes are

described in greater detail in section 5 of the preamble.

The registration rule (R18-2-302.01) will result in a mix of both additional costs and cost savings for both ADEQ and

regulated entities. The minor NSR rule (R18-2-334) will increase the costs of compliance for sources subject to that

program.

Two specific elements of the major NSR amendments are addressed in the ESBCIS:

1. New and amended ambient standards that EPA has adopted since ADEQ last amended Article 2 and that

may need to be addressed in Prevention of Significant (PSD) applications and permitting decisions, specifically: the PM2.5 increments, the new one-hour National Ambient Air Quality Standards (NAAQS) for sulfur

dioxide and nitrogen dioxide and the more stringent annual NAAQS for PM2.5 and eight-hour NAAQS for

ozone. These changes may result in increased compliance costs for sources and minor increased administrative costs for ADEQ. 

2. NSR reform amendments. These changes will reduce compliance costs and will have a mixed effect on

ADEQ’s administrative costs.

The remaining changes to major NSR are technical in nature and should have little, if any, economic impact on the

agency, businesses or consumers.

An identification of the persons who will be directly affected by, bear the costs of or directly benefit from the

rulemaking.

In general terms, the persons who will be directly affected by and bear the costs of the rulemaking will be businesses

that construct or modify stationary sources that are subject to major or minor NSR. The emissions thresholds for

sources and modifications subject to major and minor NSR are described in detail in item 6 of the Preamble.

The types of Arizona business operations subject to major NSR typically include Portland cement plants, iron and

steel mills, primary copper smelters, hard-rock mining operations, petroleum refineries, lime plants, fiberglass production facilities, wood furniture manufacturers, paper mills and fossil-fueled power plants. Major sources tend to be

large facilities operated by publicly owned corporations and employing hundreds or thousands of employees.

As discussed in item 6 of the Preamble, major sources are potentially subject to minor as well as major NSR. Minor

NSR may also apply to smaller business operations or operations that, although substantial in scale, tend to have

emissions below the major source thresholds. These include rock quarrying and crushing operations, concrete batch

plants, asphalt plants, semiconductor manufacturers, aircraft engine and parts manufacturers, landfills and petroleum

bulk stations and terminals.

The above list is not exhaustive. Any business that engages in pollutant emitting activities is potentially subject to

NSR. Typical pollutant-emitting activities include fuel combustion to produce energy or as part of a process, the use

of solvents, the application of surface coatings (such as paints and varnishes), the storage of fuels and other organic

liquids and the handling of materials likely to give rise to airborne dust. Tailpipe emissions from mobile sources are

not considered in determining NSR applicability.

As noted in item 6 of the Preamble, some stationary sources that currently require Class II permits will be eligible for

registration. ADEQ anticipates that compliance with the registration program will be significantly less onerous and

costly than obtaining a Class II permit. These sources, which may include dry cleaners, concrete batch plants, hospitals and wastewater treatment plants, will therefore directly benefit from this rulemaking.

A cost benefit analysis of the following:

(a) The probable costs and benefits to the implementing agency and other agencies directly affected by the

implementation and enforcement of the rulemaking.

As required by A.R.S. § 49-426(E), the hourly rate for billable permit actions under A.A.C. R18-2-326(B)(1)(a) and

(H) has been set to reflect ADEQ’s cost of processing permit applications. See 13 A.A.R. 4379, 4389-90 (Dec. 14,

2007). Therefore, in assessing the costs to ADEQ of conducting the permitting and administrative activities required

by this rule, the Department has assumed that the cost per additional hour of employee time is equal to the current

hourly rate of $141.50.

Major NSR

ADEQ’s costs of implementing the additional major NSR requirements will likely be minimal. In fact implementation of NSR reform may result in a net cost savings for ADEQ.

One element of the major NSR amendments that may increase ADEQ’s costs of administering the air quality permit

program is the incorporation of the new ambient standards: the PM2.5 increments, the one-hour sulfur dioxide

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tions addressing these pollutants will be somewhat longer and more complex than under current rules and will therefore require additional review time by ADEQ’s permit engineers. The other NAAQS amendments, on the other hand,

constitute an increase in the stringency of existing standards and should not result in any modeling or review time

beyond that already required.

ADEQ processes on average two major NSR permit applications per year. Not all of these will require an air quality

analysis for the new ambient standards. For those that do, the Air Quality Division Permit Section (AQDPS) estimates that the additional impact analysis review time would be at most five hours. The maximum total annual cost to

the agency per year for the additional major NSR requirements will therefore be $141.50 X 5 or $707.50.

Under A.A.C. R18-2-301(2) and R18-2-326(B)(1)(a), the permit applicant will ultimately be required to reimburse

the Department for this cost as part of its permit fee.

The impact of NSR reform on ADEQ’s air quality permitting costs is difficult to gauge. NSR reform includes elements that could either increase or reduce the costs of administering the major NSR program. For example, the availability of the actual-to-projected actual test, as an alternative to the actual-to-potential test, for determining whether

there is an emissions increase should reduce the number of applications for synthetic minor permits that the Department must process each year. On the other hand, synthetic minor permits for modifications must contain enforceable

conditions, including monitoring, recordkeeping and reporting requirements, to assure that emissions increases do not

exceed the major modification thresholds (i.e. the significance levels). A source employing the actual-to-projectedactual test is subject to no such conditions. Enforcing the prohibition against constructing a major modification

against such a source may prove more uncertain, time consuming and therefore costly, than enforcing the terms of a

synthetic minor permit.

The AQDPS believes that on balance, the cost savings of NSR reform will outweigh whatever additional costs will be

imposed. This is consistent with EPA’s conclusion that NSR reform would allow state permitting authorities to “focus

their limited resources on those activities that could cause real and significant increases in pollution.” 67 Fed. Reg.

80186, 80192 (2002).

Minor NSR

Minor NSR will apply to all new sources with the potential to emit any regulated minor NSR pollutant above the significance levels and any existing permitted source that increases its potential to emit any regulated minor NSR pollutant by more than the “permitting exemption threshold” (i.e., 3⁄4 the significance level). In addition, new sources

seeking registration may be required to obtain a permit and undergo minor NSR under R18-2-302.01(C).

Based on experience in administering the existing permit program, the AQDPS estimates that it will process approximately seven applications for permits or permit revisions subject to minor NSR per year. AQDPS also estimates that

the average additional time for review of the minor NSR components of a permit or permit revision application

(applicability analysis, case-by-case, Reasonably Available Control Technology (RACT) analysis, assertion of eligibility for RACT safe-harbor coverage and/or air quality impact analysis) will be approximately equal to the time

needed for the review of a minor permit revision application, or 10 hours. 

The Department’s estimated total annual cost to administer the minor NSR program will therefore be 7 applications X

10 hours X $141.50 per hour = $9,905.

Registration

The registration program will result in both additional costs and cost-savings to ADEQ. To the extent the program

applies to sources that do not require a permit under current rules, it will generate additional work for ADEQ’s permit

engineers and therefore increase the Department’s costs. On the other hand, as noted in item 6 of the Preamble,

sources that currently require a Class II permit solely because they are subject to an NSPS or NESHAP will be eligible for registration. Since the time to issue and administer a registration will be significantly less than the time

required for a Class II permit, this switch will result in cost savings for ADEQ. In addition, the rule amendments

eliminate the requirement to obtain any sort of license, permit or registration, for certain NSPS and NESHAP sources,

resulting in additional cost savings.

To estimate the number of existing sources that do not currently require a permit but will be subject to the new registration program, ADEQ took the total number of Maricopa County sources that would be subject to the program

according to the study discussed above and multiplied that number (150) by the ratio of the population (according to

the 2010 U.S. Census, http://quickfacts.census.gov/qfd/states/04000.html) of counties subject to ADEQ jurisdiction

(1,218,867) to the population of Maricopa County (3,817,117). The result is 48 sources requiring registration. 

The content and complexity of a registration should be no greater than that of an application for authority to operate

(ATO) under a general permit. Since the average time to review an ATO application is approximately five hours, the

average review time for registrations should be approximately the same. 

Registrations will have a five year term, and ADEQ intends to stagger its notices requiring registration submissions

under R18-2-303(D) over the first five years of the program in order to assure an even distribution of the workload

from this new program. The estimated annual cost for reviewing registrations for existing sources is therefore:

48 sources X 5 hours per registration X $141.50 per hour / 5 year registration term = $6,792.

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Based on experience with the existing permit program, AQDPS estimates that approximately 40 registrations for new

sources will be filed each year. The estimated annual cost for reviewing registrations for new sources will therefore

be:

40 sources X 5 hours per registration X $141.50 per hour = $28,300. 

ADEQ estimates that it will conduct a combination of complaint-based and audit inspections for approximately 10%

of registered sources per year and that the average time to complete each inspection and pursue any necessary

enforcement actions will be 10 hours. The estimated compliance and enforcement costs for the new program is 10%

X 48 sources X $141.50 per hour X 10 hours = $6,792.

The total estimated annual cost of the registration program is therefore: 

$6,792 (issuing registrations to existing sources) + $28,300 (issuing registrations to new sources) + $6,792 (compliance and enforcement) = $35,092.

Again, these costs will be at least partially offset by the savings described above.

The rule delays the effective date for the registration program until EPA approves it into the SIP as a component of

minor NSR. In the interim, ADEQ intends to adopt a permit fee under A.R.S. § 49-426(E) that assures recoupment of

the costs of administering the program. 

Total for all NSR amendments

The total estimated annual cost to ADEQ of the NSR amendments is:

$707.50 (additional major NSR costs) + $9,905 (minor NSR costs) + $35,092 (registration costs) = $45,704.50.

As noted above, these costs will be at least partially offset by savings from the transition of some permitted sources to

the registration program and possibly by net savings from implementation of NSR reform.

Other Agencies

Fifteen sources operated by state agencies require permits under the current program. They represent approximately

2% of all ADEQ-permitted sources. Additional state-operated sources are likely to be subject to the registration program. All of these state-operated sources will bear the same costs of compliance described in section (c) below for

privately owned businesses.

(b) The probable costs and benefits to a political subdivision of this state directly affected by the implementation and enforcement of the rulemaking.

Sixty-four sources operated by political subdivisions require permits under the current program. They represent

approximately 8% of all ADEQ-permitted sources. Additional sources operated by political subdivisions are likely to

be subject to the registration program. All of these sources will bear the same costs of compliance described in section (c) below for privately owned businesses.

As discussed in the “County NSR Program” section of item 6 of this preamble, the three counties—Maricopa, Pima

and Pinal—that have adopted their own air quality control programs may be required to amend their existing rules to

reflect the amendments in this rulemaking. ADEQ considers any resulting impacts to sources in these counties to be

indirect.

(c) The probable costs and benefits to businesses directly affected by the rulemaking, including any anticipated effect on the revenues or payroll expenditures of employers who are subject to the rulemaking.

Major NSR

As discussed in item 6 of the Preamble, the amendments to ADEQ’s major NSR rules are the minimum necessary to

comply with federal requirements for the program. Even if ADEQ failed to adopt these amendments, they would ultimately apply to major sources in Arizona either through the adoption of a federal implementation plan (FIP) by EPA

under section 110(c) of the Clean Air Act (in the case of PSD) or the application of 40 CFR 51, Appendix S (in the

case of nonattainment NSR). At best, a decision by ADEQ not to adopt the major NSR amendments would result in a

temporary delay in their application to sources in the state. A discussion of the additional costs and benefits of the

amended requirements at the state level nevertheless follows. 

The new and amended ambient standards incorporated by this rule may result in the imposition of three types of additional costs on applicants for major NSR permits. 

First, a new major source or major modification with significant emissions of any of the pollutants subject to a new

ambient standard (the PM2.5 increments or the one-hour sulfur dioxide or nitrogen dioxide NAAQS) will be required

to conduct additional modeling to demonstrate compliance with these standards. The AQDPS estimates that approximately one additional model run for each of the two major NSR applications typically filed in a year will be required.

Based on information received from an environmental consultant, the cost adding one model run to a refined model

would be approximately $8,000.

Second, applicants will be responsible for paying permit fees equal to the additional permit processing costs necessitated by the amendments. As noted above, the estimated additional processing costs for major NSR are $707.50.

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Third, when modeling demonstrates an ambient impact resulting in non-compliance with an ambient standard

(NAAQS or increments), mitigation beyond the level of control technology already required by major NSR is necessary. The cost of mitigation can be substantial but is highly dependent on the nature of the particular project and cannot be reliably estimated for purposes of the ESBCIS. Moreover, because major NSR automatically requires a very

stringent level of control (BACT or LAER), mitigation is rarely necessary. Mitigation necessary to address non-compliance with any of the new standards imposed in the major NSR amendments will be an even rarer occurrence. Thus,

the major NSR amendments are unlikely to result in additional mitigation costs.

The total estimated annual costs to sources subject to major NSR as a result of the rule amendments is therefore

$8,707.50 ($8,000 + $707.50) plus the costs of mitigation, in the unlikely event it is required.

NSR reform, on the other hand, is likely to generate substantial savings for existing major sources that are potentially

subject to major NSR. The revised method for determining baseline emissions and the actual-to-projected-actual

alternative for determining the level of future emissions will make it easier for sources to demonstrate the inapplicability of major NSR without obtaining a synthetic minor permit. Sources that obtain PALs will essentially be able to

avoid major NSR and synthetic minor permitting for a 10-year period. The savings from these reforms are difficult to

estimate, but ADEQ believes they will at least offset the additional costs described above. 

Minor NSR

As noted above, ADEQ estimates that approximately seven of the minor and major sources requiring permits or permit revisions each year will be subject to minor NSR.

Based on experience with contractors performing accelerated permitting services, AQDPS estimates that the cost of

preparing the minor NSR components of a permit or permit revision application (RACT or air quality impact analysis) will average $4,000. The estimated total annual application preparation costs attributable to minor NSR is therefore: 7 applicants X $4,000 per application = $28,000.

To assess likely compliance costs, AQDPS projects that:

• 25% of minor NSR applicants will satisfy RACT by complying with an already applicable NSPS or NESHAP

(R18-2-334(D)(2)(b); and

• 70% will comply with minor NSR on the basis of SCREEN modeling conducted by ADEQ.

Thus, 95% of sources are projected to incur no additional compliance costs as a result of minor NSR.

AQDPS further projects that of the remaining 5%, half will be required to install additional controls to comply with

RACT and half will demonstrate compliance with the NAAQS through more sophisticated modeling. Since 5% of

seven applicants per year is 0.35, approximately one applicant will be required to conduct refined modeling or install

RACT every three years.

Based on estimates provided by environmental consultants, ADEQ projects that the cost of running a refined model

to comply with minor NSR will be approximately $7,000 to $12,000. Since it is estimated that one applicant will be

subject to this requirement every three years, the annual estimated cost range is $2,333 to $4,000.

Control technology costs must be expressed as an annual amount because they include operating costs and the costs

of installation are ordinarily amortized. In addition, the cost-effectiveness of controls depends on the amount of pollution reduced by the control technology under consideration. RACT costs are therefore usually expressed in terms of

the cost per year of reducing emissions by one ton.

EPA has not established definitive ceilings for RACT costs but in guidance has indicated that, depending on the pollutant, costs may range from $150 to approximately $5,000 per ton of reduction per year for major sources. See

Memorandum from William T. Harnett Director, Air Quality Policy Division to Regional Air Division Directors re

RACT Qs & As – Reasonably Available Control Technology (RACT): Questions and Answers (EPA May 18, 2006).

ADEQ anticipates that since the RACT standard allows consideration of cost-effectiveness for the specific operation

subject to the standard, the costs for minor sources are unlikely to reach the upper end of this range. 

It is not possible to project what level of reductions will be required of applicants that may be subject to the RACT

standard under minor NSR. Thus, an estimate of absolute annual costs that may result from the program is not possible. The largest reduction that could conceivably be required under the program would be just under 250 tons per

year, which is the highest major source threshold.

Registration

Based again on experience with contractors performing accelerated permitting services, AQDPS estimates that the

average cost of preparing a registration will be $2,000. As noted above, ADEQ will also charge a fee equal to the

annual cost of registration processing and administration, estimated to be $35,092, from registered sources. 

Complying with the terms of a registration should impose no additional net costs on registrants. Registrations will

contain two types of requirements: identification of regulations already applicable to the registrant by rule and elective limits assumed under R18-2-302.01(F). The registrant is already under an obligation to comply with any applicable regulations and therefore will incur no additional costs as a result of their identification in the registration. The

purpose of elective limits is to enable registrants to avoid other requirements, including the requirement to obtain a

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Class II permit. The registrant will presumably adopt an elective limit only when the cost of doing so is less than the

cost of the requirements avoided. 

The total estimated annual cost to regulated entities of the registration program is therefore: $2,000 preparation cost

X 88 sources per year (48 renewals and 40 new) + $35,092 total annual fees = $211,092.

A general description of the probable impact on private and public employment in businesses, agencies and

political subdivisions of this state directly affected by the rulemaking.

ADEQ does not believe that the additional costs to businesses subject to the amended NSR requirements, as

described above, will be substantial enough to deter the construction or expansion of business operations. Accordingly, there should be no impact on private employment or on the employment of any political subdivisions subject to

NSR.

The Department estimates that approximately one new full-time employee will be needed to implement the new registration program and the additional workload that will result from implementing minor NSR. A more precise estimate of the employment impact of minor NSR will be included in the ESBCIS for the upcoming permit fee rule.

The amendments to major NSR include elements that will both reduce (NSR reform) and increase (new ambient standards) agency workload. ADEQ estimates that the net effect of the major NSR amendments on the agency’s employment needs will be zero. 

A statement of the probable impact of the rulemaking on small businesses.

(a) An identification of the small businesses subject to the rulemaking.

Under A.R.S. § 49-101(20): 

“Small business” means a concern, including its affiliates, which is [1] independently owned and operated, which is

[2] not dominant in its field and which [3] employs fewer than one hundred full-time employees or which had gross

annual receipts of less than four million dollars in its last fiscal year. (Emphasis added.)

Most registration sources will likely qualify as small businesses as will many sources subject to minor NSR. It is

unlikely that any major sources would qualify.

(b) The administrative and other costs required for compliance with the rulemaking.

Small businesses will primarily incur the business costs described above for the registration program. On occasion, a

small business may incur minor NSR costs, but ADEQ anticipates that this will be rare.

(c) A description of the methods that the agency may use to reduce the impact on small businesses.

(i) Establishing less costly compliance requirements in the rulemaking for small businesses.

The registration program is a less costly alternative to the existing permit program designed specifically with small

businesses in mind. Many small businesses currently required to obtain permits (e.g., dry cleaners) will be eligible for

registration and will no longer require a permit. Thus, for some small businesses, the new program will be less costly

than the current program.

(ii) Establishing less costly schedules or less stringent deadlines for compliance in the rulemaking.

The registration and minor NSR programs will not be effective until approved by EPA into SIP. This is the latest the

program could go into effect and still meet minimum federal requirements. For existing sources subject to the registration program, ADEQ has designed a system that will allow them to be phased in gradually according to a schedule

to be developed by the Department.

(iii) Exempting small businesses from any or all requirements of the rulemaking.

Most small businesses will be exempt from minor NSR, because their low emission rates will place them in the registration program, where minor NSR is the exception, rather than the rule. Many small businesses will benefit from the

safe harbor RACT exemption.

(d) The probable cost and benefit to private persons and consumers who are directly affected by the rulemaking.

Some businesses may pass some of the additional costs estimated above on to consumers. Because the amendments

will not substantially increase existing air quality compliance costs, ADEQ anticipates that the impact will be negligible.

A statement of the probable effect on state revenues.

Since the costs of the amendments will be recoverable through air quality permit fees, there will be no net effect on

state revenues.

A description of any less intrusive or less costly alternative methods of achieving the purpose of the rulemaking.

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As discussed in item 6 above, ADEQ has adopted amendments that the Department believes to be the minimum necessary to comply with federal NSR requirements. No less intrusive or costly alternatives are available. 

10. A description of any changes between the proposed rulemaking, to include supplemental notices, and the final

rulemaking:

Section/Subsection Revision and Reason

R18-2-101(13) Added reference to 40 CFR 63 to be consistent with federal rule. 

R18-2-101(51) Removed reference to Class I or II permits in response to comment 56.

R18-2-101(53) Added registration and conditions adopted under R18-2-306.02 to list of programs that can

create federally enforceable requirements in response to comment 3. 

R18-2-101(80) Replaced “federally enforceable” with “legally and practically enforceable” in response to

comment 4.

R18-2-101(98) Added reference to air pollution control district to definition of “permitting authority” in

response to comment 8.

R18-2-101(109) Expanded on enforceability requirements in definition of potential to emit in response to comment 51.

R18-2-101(152) Updated the definition of VOC to be consistent with EPA’s definition at 40 CFR 51.100(s)

R18-2-301(12) Added changes subject to emissions caps imposed under R18-2-306.02 to exemption from definition of “minor NSR modification” in response to comment 11.

R18-2-301(22)

R18-2-302(B)(2)

R18-2-302.01(A)(3),

(B)(3)(b), (C)(1) and (2)

Added definition of “uncontrolled potential to emit” and substituted that defined term for language used repeatedly in rule in response to comment 39.

R18-2-302(B)(3) Revised language to make it clear that facilities exempt from registration under (B)(4) after

EPA approval of registration program are also exempt from permitting before approval in

response to comment 63.

R18-2-302(B)(4) Revised to make it clear that registration program takes effect on effective date of EPA

approval and to be consistent with (B)(3) in response to comment 13.

R18-2-302(B)(4)(a), (d) Substituted descriptive language for “potential to emit without controls” to avoid confusion

with new defined term “uncontrolled potential to emit.”

R18-2-302.01(G)(1) Added introductory language to make it clear that if a modification takes a registered source

over the Class II permitting threshold, a permit rather than a revised registration is required. In

response to comment 65.

R18-2-303(C) Extended date for sources subject to registration to notify ADEQ in response to comment 66.

R18-2-304(B)(4) Added reference to limits established under R18-2-306.02 in response to comment 16.

R18-2-317(A) Revised to be consistent with 40 CFR 70.2 and 70.4(b)(12)(i).

R18-2-334(G) Revised to clarify that modeling is not required for each emissions unit, but for entire source,

and that RACT need only be imposed on emission units that exceed the thresholds specified in

(C)(1). In response to comment 36.

R18-2-334(H) Added requirements for notice to EPA and state and local agencies mandated by 40 CFR

51.161(d) in response to comment 48.

R18-2-334(K)

R18-2-403(I)

Added clarification that issuance of minor NSR or nonattainment major NSR permit does not

relieve owner or operator of responsibility to comply with applicable law in response to comment 43.

R18-2-401(2)(d)

R18-2-412(E)(1)

Revised PAL provisions to be consistent with federal law in response to several comments

from AMA and Intel.

R18-2-401(11)(e) Added fugitive emissions exclusion to definition of major source in order to be consistent with

federal law in response to comment 42.

R18-2-403(F)

R18-2-406(E)

Changed time limit for temporary operations not subject to certain major NSR requirements

from 12 months to 24 months consistent with comments 26 and 30. 

R18-2-403(I) Added deadlines required by federal back to major NSR program in response to comment 25.

R18-2-404(A), (F) Revised language to be consistent with section 173(c)(1) of the Clean Air Act in response to

comments 40 and 41.

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11. An agency’s summary of the public or stakeholder comments made about the rulemaking and the agency response

to the comments:

Comment 1: R18-2-101 definition of “begin actual construction.” ADEQ notes that EPA Region IX has objected to

the inclusion of the clause at subsection (a)(iii), which excludes “[i]nstallation of ancillary structures, including

fences, office buildings and temporary storage structures, that are not a necessary component of an emissions unit or

associated air pollution control equipment for which the permit is required” from the definition for purposes of Title

I, Parts C and D and section 112 of the Act. Although EPA Region IX’ s specific concerns are unclear, the Arizona

Mining Association (AMA) understands the clause at issue to be consistent with EPA’s longstanding policy that

“begin actual construction” includes only construction on an emissions unit and “any installations necessary to

accommodate that unit.” See e.g., EPA memorandum entitled “Construction Activities Prior to Issuance of a PSD

Permit with Respect to Begin Actual Construction” from Edward E. Reich, Director, EPA Stationary Source Compliance Division, dated March 28, 1986. Construction of “optional” structures that are not an “integral part of the PSD

source or modification” is not prohibited under the definition. See EPA memorandum entitled “Source Construction

Prior to Issuance of a PSD Permit” from Thomas W. Devine, Chief Air Branch, Region I, dated October 10, 1978;

EPA Letter from John S. Seitz, Director of Air Quality Planning and Standards, to Charles W. Williams, Commissioner, Minnesota Pollution Control Agency, dated December 13, 1995. AMA requests clarification on EPA Region

IX’s specific concerns and proposes to work with ADEQ to address those concerns. (AMA)

Response: In the December 13, 1995 letter cited by the comment, EPA states that:

“[i]f the construction activity is an integral part of the PSD source or modification, the source must obtain a

PSD permit prior to construction. In other words, if the construction would not serve in accordance with its

original intent except for inclusion of the emissions unit, such construction is prohibited prior to obtaining a

PSD permit.”

The quote is from a May 13, 1993, EPA Memorandum from John B. Rasnic to Bernard E. Turlinski regarding construction activities at Georgia Pacific. In the Georgia Pacific memorandum, EPA states that:

The PSD regulations prohibit any construction activities that are of a permanent nature related to the specific

project for which a PSD permit is needed, as opposed to general construction activities not related to the

emissions unit(s) in question, prior to the receipt of a construction permit. This standard prohibits activities

affecting the property in a permanent way that the source would reasonably undertake only with the

intended purpose of constructing the regulated project.

(Emphasis added.) The exclusion in R18-2-101(20)(a)(iii) could be misinterpreted to allow the pre-permit construction of facilities that fall within this description. ADEQ, however, commits to interpret subsection (a)(iii) to be consistent with the December 13, 1995 EPA’s guidance. Specifically, the exclusion shall not apply to any ancillary

structures “that the source would reasonably undertake only with the intended purpose of constructing the regulated

project.”

Comment 2: R18-2-101 definition of “categorically exempt activities.” It is not clear why only “boilers” up to 10

mmbtu/hr are categorically exempt and not all natural-gas fired equipment. At the very least, the provision should be

revised to read “Any combination of natural gas fired equipment with a cumulative maximum design heat input

capacity of less than 10 million Btu/hr.” Similar provisions exist in many state codes and should not present an

approvability issue. (AMA)

Response: The suggested change would actually restrict the scope of the exemption, since it currently applies to boilers that burn any type of fuel. Other exemptions within the definition cover other types of natural-gas fired equipment. Thus, the change is not necessary.

Comment 3: R18-2-101 definition of “federally enforceable.” In the context of defining those limitations and conditions that are enforceable by EPA and those that are enforceable only by the state, AMA requests that ADEQ clarify

that the registration portion of the NSR program (not just permitting) is included in subsection (b) and add “R18-2-

306.02” to subsection (d) as additional authority for voluntarily established permit conditions that become enforceable. (AMA)

Response: ADEQ has added the requested references.

Comment 4: R18-2-101 definition of “federally enforceable.” As used for other purposes, the term “federally

enforceable” does not appear relevant in light of the National Mining Association and Chemical Manufacturer’s

Association cases that explicitly rejected the “federally enforceable” concept for purposes of calculating potential to

emit. While ADEQ has replaced the term with the broader “enforceable as a practical matter” under the R18-2-101

R18-2-404(J) Added specific offset ratio requirements for marginal and moderate ozone nonattainment areas

in response to comment 44.

R18-2-405(C), (D) Revised to apply special rules for modifications occurring in serious or severe ozone nonattainment areas to NOx as well as VOC as required by section 182(f) of the Clean Air Act. In

response to comment 28.

R18-2-406(A)(6)(a) Updated reference to latest version of Appendix W in response to comment 29.

Throughout Fixed cross-reference errors identified by ADEQ or by commenters.

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definitions of “net emissions increase” and “potential to emit,” the term “federally enforceable” still appears throughout the NSR rules (e.g., the R18-2-101 definitions of “allowable emissions,” “major modification,” “modification,”

and “Minor NSR Modification”; the R18-2-304 permit application processing provisions at E.9; the R18-2-317 facility change without permit revision provision at A.5; the R18-2-319 minor permit revision provision at A.4.a; and the

R18-2-404 Offsets provisions at D and F). As the definition of “federally enforceable” is currently proposed, it would

have unintended consequences for the other NSR rule provisions that reference that term. For example, the R18-2-

101 definition of “allowable emissions” would exclude “the condition of any permit designated as being enforceable

only by the state” and restrictions “designated as enforceable only by the state that are included in a permit pursuant

to R18-2-306.01” from consideration in the allowable emission rate calculation. AMA requests that ADEQ revise the

“federally enforceable” references in the NSR rules (e.g., using the broader “enforceable as a practical matter” language) as necessary to address these unintended consequences. (AMA)

Response: As the commenter notes, 
ational Mining Association v. EPA, 59 F.3d 1362 (D.C. Cir. 1995) (
MA) and

Chemical Manufacturers Association v. EPA, No. 89-1514 (D.C. Cir. Sept. 15, 1995) (CMA) rejected the “federally

enforceable” concept solely for purposes of calculating potential to emit in the federal hazardous air pollutant (HAP)

and NSR programs, respectively. Clean Air Implementation Project v. EPA, No. 96-1224 (D.C. Cir. June 28, 1996)

(CAIP) did the same for the potential to emit definition in the Title V program. 

The use of “enforceable as a practical matter” in the definition of net emissions increase is specifically authorized by

40 CFR 51.166(b)(3)(vi)(b). 

However, the two other federally defined terms cited by the commenter – “allowable emissions” and “major modification” – continue to require federal enforceability. 40 CFR 51.165(a)(2)(ii) and (v)(C)(6). Unlike the definition of

potential to emit, these definitions are not subject to the CMA decision. 

Section 51.166(b), 40 CFR, provides:

All State plans shall use the following definitions for the purposes of this section. Deviations from the following wording will be approved only if the State specifically demonstrates that the submitted definition is

more stringent, or at least as stringent, in all respects as the corresponding definitions below.

Replacing the term “federally enforceable” with “enforceable as a practical matter” in these two definitions would

render ADEQ’s NSR rules inconsistent with current federal rules and therefore unapprovable. 

The federal enforceability requirements in the offset provisions at R18-2-404(D)(1)(a) and (f) are specifically

required by 40 CFR 51.165(a)(3)(ii)(C)(1)(i) and (E). These provisions are also not subject to the CMA decision.

Amending the state rules on which they are based would render them unapprovable.

Three other rules cited by the comment, R18-2-304(E)(9), R18-2-317(A)(5) and R18-2-319(A)(4)(a), are elements of

ADEQ’s EPA-approved Title V program. The federal enforceability requirements in these rules are specifically

required by EPA’s Part 70 regulations. See 40 CFR 70.4(b)(12)(iii); 70.7(e)(2)(i)(A)(4)(A); 70.2 (definition of “section 502(b)(10) changes”). Since these provisions, unlike the Title V definition of potential to emit, were not affected

by the CAIP decision, ADEQ cannot amend the corresponding state rules.

In the case of the remaining two provisions addressed in this comment, the definitions of “modification” and “minor

NSR modification,” there is no specific requirement that limits be federally enforceable before they may be taken into

account. ADEQ is therefore revising these terms to remove the federal enforceability requirement. 

See also response to Comment 51.

Comment 5: R18-2-101 definition of federally listed hazardous air pollutant. It is unclear why the state provision at

“R18-2-1701(9)” is referenced rather than the federal provision at Clean Air Act § 112(b)(1), 42 U.S.C. 7412(b)(1).

(AMA)

Response: The list at Clean Air Act § 112(b)(1), 42 U.S.C. 7412(b)(1) is subject to change by EPA under § 112(b)(2)

and (3). ADEQ cannot incorporate these changes prospectively, but must instead incorporate them as they occur into

R18-2-1703, which is referenced in R18-2-1701(9).

Comment 6: R18-2-101 definition of insignificant activity. The commenter recommends that ADEQ re-evaluate

whether all of the detailed information that this definition requires is really necessary. For example, it is unclear why

piping, which is designed not to release material, needs to be listed unless subject to an NSPS leak detection and

repair requirement. Similarly, listing each and every container is burdensome and does not add much to the permit

writer’s understanding of the facility. (AMA)

Response: Although piping is of course designed not to release material, leaks sometimes occur and in fact are more

likely to occur in systems without leak detection and repair requirements. It is therefore helpful for inspectors to have

a piping system description, as required by the definition. The rule does not require the listing of every container but

only storage tanks with a volume of 350 gallons or more. 

Comment 7: The R18-2-101 definition of “major modification” leaves out the following language: “The source or

modification would be a major stationary source or major modification only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit of the stationary source or modification and such source

does not belong to a” 302(j) category. This language is found at 40 CFR 52.166(i)(ii) and is not subject to the stay.

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See 76 Fed. Reg. 17548 (Mar. 30, 2011). While this may seem inconsistent with the stayed provisions, it allows a

source opting to use the “potential to emit” test to continue to exclude fugitives, while sources using the “projected

actual emissions” test might have to include them under the stay. (AMA)

Response: ADEQ agrees that the existing fugitive emissions exclusion cited by the commenter is not subject to the

stay on EPA’s 2008 fugitive emissions rulemaking. In ADEQ’s NSR rules, this exclusion is set forth in R18-2-404(E)

(for nonattainment NSR) and R18-2-406(C) (for PSD).

Comment 8: R18-2-101 definition of permitting authority. The definition should also include an “air pollution control district” as authorized by A.R.S. § 49-473.B. (AMA)

Response: ADEQ agrees and has made this change.

Comment 9: R18-2-101 definition of major modification. ADEQ notes that EPA Region IX has objected to the language explaining that NOx is presumed to be a precursor for PM2.5 unless the director demonstrates to the administrator’s satisfaction or the administrator demonstrates that NOx emissions from sources in a specific area are not a

significant contributor to that area’s ambient PM2.s concentrations. Presumably, EPA Region IX’s concerns were the

basis for the removal of the similar clarifying language regarding the rebuttable presumption that volatile organic

compounds (VOCs) are presumed not to be precursors to PM2.5. Because this language was taken verbatim from

EPA’s federal rules (i.e., 40 CFR 51.166(b)(49) and 40 CFR 52.21(b)(50)), EPA Region IX’s objection is unclear.

Although EPA Region IX indicates that if ADEQ is able to make the required demonstration in the future, it may

amend the rule to exclude NOx from being considered a PM2.5 precursor in the appropriate areas, this would add an

additional ADEQ rulemaking hurdle (and presumably, an EPA SIP-approval process) before NOx could be excluded

as a precursor for PM2.5. Accordingly, AMA requests that ADEQ replace the former language addressing the rebuttable presumptions on precursor status for both NOx and VOCs, which is consistent with the federal rules. (AMA)

Response: EPA Regions 9’s position is that the language of the federal rule cited by the commenter was never

intended to be included in state rules verbatim but was instead intended to establish the requirements states must meet

in order to address specific PM2.5 precursors in their rules. This appears to be a reasonable reading of the agency’s

own rules. ADEQ therefore declines to make the change requested. ADEQ’s understanding is that in the absence of

language specifying otherwise, VOCs will not be considered PM2.5 precursors. Thus the removal of the federal language will have no effect with regard to VOCs. (AMA)

Comment 10: Definition of SCREEN model. Because the air dispersion model used for screening purposes may

vary, AMA recommends that ADEQ provide a generic definition for “screen model” rather than specific reference to

AERSCREEN. Otherwise, rulemaking would be required to use a different screening model (e.g., an updated EPA

model) where other parts of the NSR rules specify the term “SCREEN model.” (AMA)

Response: The term SCREEN model is used only in contexts where the AERSCREEN model would be required.

Failing to specify the model in the rule would raise approvability issues.

Comment 11: R18-2-301 definition of minor NSR modification. AMA requests that ADEQ add “R18-2-306.02” as

additional authority for emission caps under subsection (d)(ii). (AMA)

Response: ADEQ agrees and has made the requested change.

Comment 12: R18-2-302. Applicability; Registration; Classes of Permits. Presumably, ADEQ replaced “modification” in R18-2-302(B)(2)(b) with “make a physical or operational change” to address the difference between the

newly incorporated statutory definition of “modification” (which requires that an emissions increase at a minor

source be determined by comparing the source’s potential to emit before and after the modification) and the

intended Class II permit applicability determination for existing unpermitted, unregistered, or registered sources

(which would require an evaluation of potential to emit without controls other than elective limits that have or

would be adopted under R18-2-302.01(F)). By replacing this language, however, ADEQ has removed the types of

changes that are not considered a physical change or change in the method of operation. AMA requests that ADEQ

add these exclusions to the revised language in R18-2-302(B)(2)(b) or replace the former language to be consistent

with the statutory definition of “modification.” (AMA)

Response: The cited section essentially requires a non-permitted source to obtain a permit when its emissions or

potential to emit first exceed the permitting threshold. A permit should be required for such a source, regardless of the

cause of the increase in emissions. Exclusions, such as those in R18-2-301(12)(d) therefore should not be available in

this section. ADEQ notes that the vast majority of the activities identified in R18-2-301(12)(d) would not in any case

be expected to cause an increase in potential to emit, which is the metric used to determine permit applicability. If an

activity, such as routine maintenance, repair or replacement or an increase in hours of operation, caused actual emissions to exceed the permitting threshold, that circumstance would indicate that the potential to emit was incorrectly

calculated. 

Comment 13:A MA also suggests that ADEQ replace “administrator approves” with “effective date of the Administrator’s approval of” in R18-2-302(B)(4) to be consistent with the language in R18-2-302(B)(3). (AMA)

Response: ADEQ agrees and has made this change.

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Comment 14: AMA requests that ADEQ revise the registration revision trigger in R18-2-302.01(G)(1)(a) as necessary to conform with the revisions to R18-2-302(B)(2)(b) requested above (in comment Comment 12). (AMA)

Response: This provision specifies when a previously unregistered source becomes subject to registration. Thus the

response to Comment 12 applies here as well.

Comment 15: Consistent with the comment regarding the definition of “SCREEN model” above, AMA requests that

ADEQ replace the references to “SCREEN model” in R18-2-302.01(C) with general references to “screen model.”

(AMA)

Response: See response to Comment 10.

Comment 16: Add “R18-2-306.02” as additional authority for a proposed emission limitation, control, or other

requirement in R18-2-304(B)(4). (AMA)

Response: ADEQ agrees and has made the requested change.

Comment 17: The intent of the revised language at R18-2-304(C)(3) is unclear because the reference to “R18-2-

326(A)(3) “is a type of source category for fee purposes and that provision references language in R18-2-302

that will no longer exist as proposed under the NSR rule revisions (i.e., R18-2-302(B)(2)(a)(i) and (ii)). If ADEQ

intends to require an existing Class II non-Title V source to obtain a permit revision upon becoming subject to

a standard promulgated by the Administrator pursuant to Section 112(d) of the Act, this should be addressed in

the permit revision requirements for Class II sources. The permit application processing provision under R18-2-

304(C)(3) could then be revised to clarify that a permit revision application necessary to address this requirement

is considered timely if submitted within 12 months of the date on which the standard is promulgated. (AMA)

Response: ADEQ will revise section R18-2-326 in a future rulemaking to establish fees for the new registration program. In that rulemaking, ADEQ will fix the cross references mentioned, but believes this language is otherwise

clear.

Comment 18: While ADEQ has removed R18-2-304.D provisions regarding applications being deemed automatically complete if it does not otherwise notify the applicant within 60 days, it has not addressed how and when applicants will be notified of administrative completeness determinations. AMA requests that ADEQ provide provisions

that clarify this important part of the permitting process. (AMA)

Response: This comment appears to be directed at R18-2-304(E)(4), rather than R18-2-304(D). ADEQ proposed to

remove this provision because procedures for notifying applicants of completeness determinations are now addressed

by the licensing time-frame rules at 18 A.A.C. 1, Article 5. ADEQ, however, has determined that in some circumstances, the time period specified for completeness determinations in the licensing time-frames rule (41 business

days) may exceed the 60 calendar days allowed by this rule and the Part 70 provision (40 CFR 70.4(a)(4)). ADEQ has

restored R18-2-304(E)(4) in the final rule in order to ensure compliance with Title V requirements.

Comment 19: As noted in comments above, cross references throughout R18-2-326 need to be revised to reflect

changes to those referenced provisions in the proposed NSR rule revisions. (AMA)

Response: ADEQ will revise section R18-2-326 in a future rulemaking to establish fees for the new registration program. In that rulemaking, ADEQ will fix the cross references mentioned.

Comment 20: R18-2-334. Because the permitting exemption (i.e., de minimis) thresholds are already quite small,

AMA urges ADEQ to replace the proposed RACT trigger of 20% of these thresholds with a level at or near the permitting exemption thresholds for an emissions unit that does not already have a presumptive RACT. There would be

little or no utility in conducting a costly case-by-case RACT review for units with emissions at the levels proposed.

(e.g., 1 tpy for PM2.5). (AMA)

Response: When, as is often the case, a modification consists of changes to several emission units, a high emission

unit threshold could result in exempting all of the emissions otherwise subject to RACT, thus nullifying the requirement. On the other hand, as the commenter notes, an excessively low threshold could result in requiring RACT determinations for inconsequential emission changes. ADEQ has concluded that the 20% threshold represents a

reasonable compromise between these competing concerns. (AMA)

Comment 21: R18-2-334. Consistent with the comment regarding the definition of “SCREEN model” above, AMA

requests that ADEQ replace the references to “SCREEN model” in R18-2-334(C)(2) and (G) with general references

to “screen model.” (AMA)

Response: See response to Comment 10.

Comment 22: As currently drafted, the ambient air quality assessment demonstration provision at R18-2-

334(C)(2)(b) proposes an undefined “exacerbate” standard. Because this proposed approach introduces additional

uncertainty, could unnecessarily preclude construction or modification activities in nonattainment areas, and does not

address the fundamental minor NSR program requirement to ensure that the source or modification does not result in

a violation of the control strategy in a nonattainment area (see 40 CFR 51.160(a)(1)), AMA requests that ADEQ

reconsider the approach proposed on behalf of its member company, ASARCO, on November 11, 2010 (attached).

(AMA)

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Response: The ASARCO proposal would allow a source subject to minor NSR and located in a nonattainment area

to comply by meeting certain control requirements, regardless of its impact on ambient air quality. ADEQ does not

believe this ASARCO proposal would meet the clear federal requirement to prevent the construction of a new source

or modification if it will “interfere with the attainment or maintenance of a” NAAQS. It should be noted that R18-2-

334(C)(2)(b)(ii) allows applicants to demonstrate compliance by showing that any increase in ambient impacts will

fall below the relevant significant impact level. Thus, an increase in ambient concentrations in an area with concentrations exceeding the standard will not necessarily violate minor NSR.

As noted in the preamble:

ADEQ’s current minor source permitting rules require the inclusion of “[e]nforceable emission limitations

and standards, including operational requirements and limitations that ensure compliance with all applicable

requirements.” A.A.C. R18-2-306(A)(1). They therefore satisfy the requirement in EPA’s minor NSR rules

to assure that minor sources do not violate “applicable portions of the control strategy.”

Contrary to the comment, the Arizona minor NSR program does “address the fundamental minor NSR program

requirement to ensure that the source or modification does not result in a violation of the control strategy in a nonattainment area.”

Comment 23: AMA understands that the intent of the most recent changes to the draft NSR rule revisions was to

make the major NSR provisions consistent with the corresponding federal NSR rules. Although adopting the federal

language verbatim would appear to be the simplest and most straightforward approach, ADEQ has elected to vary

from the federal rules in some cases. Because not all such variations are “self-explanatory” as ADEQ suggests, it is

unclear whether they were specifically intended or the result of an error or omission. While some apparent errors are

identified below, AMA requests clarification of ADEQ’s intent and purpose of the variations from the federal major

NSR language. (AMA)

Response: The intent of the proposed amendments to the major NSR program is to make ADEQ’s rules consistent

with and no more stringent than EPA’s rules, as required by state law. As noted elsewhere in these responses, ADEQ

is correcting all specific discrepancies between EPA rules and the rule amendments pointed out by commenters.

Comment 24: R18-2-401 definition of baseline actual emissions. In subsection (d), the language regarding the calculation of baseline actual emissions for existing sources should be revised to address exiting electric utility steam generating units (i.e., in accordance with subsection (a)) and other existing emissions units (i.e., in accordance with

subsection (b)) consistent with the federal rules. The reference to “subsection (b)” should be to “subsection (c)” for

new emissions units. (AMA)

Response: ADEQ has made this change.

Comment 25: ADEQ has proposed to delete the one-year time-frame for issuance of a PSD permit currently contained in R18-2-402(D)(3). This requirement is statutory (i.e., U.S.C. 7475(c)) and binding upon the agency. See, e.g.,

Avenal Power Center, LLC v. EPA, D.D.C. Civ. Action No. 10cv383 (RJL) (May 26, 2010). Because this time-frame

would begin when ADEQ deems an application administratively complete, AMA requests that ADEQ expressly

specify how and when PSD permit applicants will be notified of administrative completeness determinations. (AMA)

Response: ADEQ proposed to delete former R18-2-402(D)(1) and (3) (now (I)(1) and (3)), because the procedures

for determining administrative completeness and the deadlines for issuing major NSR permits are specified in the

licensing time-frames rule at Title 18, Chapter 1, Article 5. The deadlines for issuing PSD permits established in those

rules, however, are not uniformly shorter than the one-year time-frame in the deleted subsection. See Table 1, Group

1 in Article 5. ADEQ therefore has restored these provisions in the final rule.

Comment 26: The revised language in R18-2-403(F) appears intended to provide clarification on the residency timeframe for what is considered a temporary emissions unit. AMA requests that ADEQ replace “12 months” with “two

years” consistent with EPA guidance (attached). (AMA)

Response: The 1979 EPA guidance cited by the comment notes that EPA considers two years to qualify as “temporary” for purposes of the exemption from ambient impact analysis requirements allowed by the PSD rule. ADEQ

agrees that the same approach would be justified in determining whether the exemptions made available here and in

R18-2-406(E) apply and has revised the rule accordingly.

Comment 27: The reference to “subsection (A)(l) or (A)(2)” in R18-2-404(B) should be “subsection (B)(1) or

(B)(2).” (AMA)

Response: ADEQ has made this correction.

Comment 28: Because Clean Air Act § 182(f) indicates that the plan provisions required for major stationary sources

of VOCs shall also apply to major stationary sources of NOx, it is unclear why ADEQ has removed the references to

NOx in R18-2-405(C) and (D). AMA requests that ADEQ replace the NOx references or clarify the basis for their

removal. (AMA)

Response: ADEQ agrees and has made this change.

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Comment 29: R18-2-406(A). The July 1, 2004 version date reference for the Guideline on Air Quality Models at 40

C.P.R. Part 51, Appendix W in R18-2-406(A)(6) does not reflect the most recent version indicated by EPA, November 9, 2005 (70 Fed. Reg. 68,228). (AMA)

Response: ADEQ has updated this reference.

Comment 30: As explained above, AMA requests that ADEQ replace “12 months” in R18-2-406(E) with “two

years” consistent with EPA guidance.

To remain consistent with the federal rule language at 40 CFR 51.165(f)(6), AMA requests that ADEQ add the following sentence after the second sentence in R18-2-412(E)(l):

However, a different consecutive 24-month period may be used for each different PAL pollutant.

Also, AMA requests that the following references be corrected:

“R18-2-412(F)(1)” in R18-2-412(E)(2) should be to “R18-2-412(E)(l)”; 

“subsection (L)” in R18-2-412(G)(2)(a)(iii) should be to “subsection (J)”; 

“subsection (J)” throughout R18-2-412(K) should be to “subsection (K)”; and 

“R18-2-412(L)(7)” in R18-2-412(M)(1)(g) should be to “R18-2-412(J)(7).” 

(AMA)

Response: ADEQ has made the requested changes, except that the last change should be made to R18-2-

412(M)(1)(f), rather than (g), and should revise the reference to read “R18-2-412(K)(7),” rather than “R18-2-

412(J)(7).” There is no R18-2-412(J)(7).

Comment 31: While ADEQ indicates that it has a duty to ensure that its major NSR rules are consistent with and no

more stringent than the corresponding EPA regulations and that it is proposing to adopt major NSR amendments that

are “substantially identical” to EPA’s rules, the proposed NSR rule revisions contain several variations from the federal rules. Although Intel recognizes that some variations reflect certain legal developments (e.g., the stay and reconsideration of EPA’s Fugitive Emissions Rule), the basis for others is unclear. If such variations are simply errors in

incorporating the text of the federal rules, Intel requests that ADEQ make appropriate corrections or otherwise

explain how the variation is consistent with and no more stringent than the corresponding EPA rules. (Intel Corporation)

Response: The intent of the proposed amendments to the major NSR program is to make ADEQ’s rules consistent

with and no more stringent than EPA’s rules, as required by state law. As noted elsewhere in these responses, ADEQ

is correcting all specific discrepancies between EPA rules and the rule amendments pointed out by commenters.

Comment 32: For example, the proposed definition of “baseline actual emissions” at A.A.C. R18-2- 401(2)(d) for a

PAL at a stationary source is inconsistent with the corresponding federal definition at 40 CFR 51.166(b)(47)(iv),

which provides:

For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam

generating units in accordance with the procedures contained in paragraph (b)(47)(i) of this section, for other existing

units in accordance with the procedures contained in paragraph (b)(47)(ii) of this section, and for a new emissions

unit in accordance with the procedures contained in paragraph (b)(47)(iii) of this section.

As currently drafted, ADEQ’s proposed definition would instead require that baseline actual emissions for all existing

emissions units be calculated using the procedures in R18-2-401(2)(a), which apply only to existing electrical utility

steam generating units and would limit the contemporaneous period to five years. Furthermore, baseline actual emissions for new emissions units would be calculated using the procedures in R18-2-401(2)(b), which apply to any existing emissions unit other than an electric utility steam generating unit. Accordingly, Intel requests that ADEQ revise

R18-2-401(2)(d) as follows to be consistent with the corresponding federal rules:

For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam

generating units in accordance with the procedures contained in subsection (2)(a), for other existing emissions units

in accordance with the procedures contained in subsection (2)(b), and for a new emissions unit in accordance with the

procedures contained in subsection (2)(c). (Intel)

Response: ADEQ has corrected the rule language to be consistent with the federal rule.

Comment 33: Portions of the proposed PAL provisions at R18-2-412 are also inconsistent with the corresponding

federal rules. For example, 40 C.P.R. § 51.165(f)(6)(i) provides:

Setting the 10-year actuals PAL level. (i) Except as provided in paragraph (f)(6)(ii) of this section, the plan shall provide that the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual

emissions (as defined in paragraph (a)(1)(xxxv) of this section) of the PAL pollutant for each emissions unit at the

source; plus an amount equal to the applicable significant level for the PAL pollutant under paragraph (a)(l)(x) of this

section or under the Act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one

consecutive 24-month period must be used to determine the baseline actual emissions for all existing emissions units.

However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shut down after this 24-month period must be subtracted from the PAL level.

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The reviewing authority shall specify a reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on

the future compliance date(s) of any applicable Federal or State regulatory requirement(s) that the reviewing authority is aware of prior to issuance o f the P AL permit. For instance, i f the source owner or operator will be required to

reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOx to a new rule limit of 30

ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half

of the original baseline emissions of such unit(s).

As currently proposed, R18-2-412(E)(l) omits the third sentence contained in the federal provision above. Intel therefore requests that ADEQ add that sentence after the second sentence in R18-2-412(E)(l). (Intel)

Response: ADEQ has corrected the rule language to be consistent with the federal rule.

Comment 34: Intel presumes that the items identified above were simply an oversight and not an intentional variation from the federal rules. However, if the latter is the case, Intel requests that ADEQ reconsider such variations and

ensure that they are consistent with and no more stringent than the corresponding federal rules. As explained previously, the delays inherent in permitting and the inability to predict and manage regulatory obligations could be devastating for operations such as Intel’s. Permitting delays and uncertain regulatory requirements would significantly

hinder Intel’s ability to plan, innovate, and quickly respond to market conditions, which would likely result in lost

market opportunities and revenue, decline in market share and semiconductor manufacturing, lost jobs, and the cascading effect on Arizona’s already ailing economy. It therefore appears critical that ADEQ provide the full scope of

flexibility afforded under EPA’s NSR Reform Rules-especially in light of the additional burdens from application of

PSD requirements to sources of GHG emissions. Providing the means for facilities to use flexible mechanisms such

as PALs to avoid these permitting burdens also promotes significant environmental benefits by providing certainty

regarding the emissions impact of a facility and a powerful incentive for pollution prevention efforts. Indeed, PALs

allow facility resources to be directed at reducing emissions rather than permitting paperwork. (Intel)

Response: The intent of the proposed amendments to the major NSR program is to make ADEQ’s rules consistent

with and no more stringent than EPA’s rules, as required by state law. As noted elsewhere in these responses, ADEQ

is correcting all specific discrepancies between EPA rules and the rule amendments pointed out by commenters.

Comment 35: The RACT threshold should be set at 50% of the permitting exemption threshold, not the proposed

20%. EPNG believes that setting the RACT threshold at 20% of the permitting exemption threshold is too low. Particularly for particulate matter, this threshold results in a potential case-by-case proceeding for units emitting as little as

4 ton/year NOx, 1 ton/year PM2.5 and 1.5 ton/year PM10. It is not clear that case-by-case reductions at such small

quantities will provide an air quality benefit. The other state and EPA programs tend to focus on 5 tons/year as a general minimum, with slightly lower quantities for PM2.5 and lead. In addition, the 20% threshold will increase the

number of case by case RACT determinations for normally insignificant sources and it introduces some unintended

consequences such as the potential for permit delays and increased control costs. EPNG recommends that ADEQ

move the trigger threshold for RACT to 50% of the permitting exemption threshold. At a 50% trigger, there is a

greater likelihood that emission reductions obtained through the RACT process will result in an environmental benefit.

Accordingly, proposed R18-2-334(C)(1)(a) and (b) should be revised as follows:

a. In the case of a new source, the owner or operator shall implement RACT for each emissions unit that will

experience an increase in the potential to emit a regulated minor NSR pollutant equal to or greater than 50%

of the permitting exemption threshold. 

b. In the case of a minor NSR modification, the owner or operator shall implement RACT for each emissions

unit that will experience an increase in the potential to emit of a regulated minor NSR pollutant equal to or

greater than 50% of the permitting exemption threshold. 

(El Paso Natural Gas Company, “EPNG”)

Response: See response to Comment 20.

Comment 36: Proposed R18-2-334(G) should be revised to clarify that RACT is only required for emissions units

that exceed the RACT trigger threshold. EPNG notes that there is an apparent error in subsection R18-2-334(G)(1).

The provision implies that all emission units potentially require RACT, regardless of size. This is not correct; only

units that exceed the threshold percentage (EPNG proposes 50% of the permitting exemption threshold) require

RACT.

Accordingly, R18-2-334(G)(1) should be revised to read as follows:

A RACT standard is imposed under subsection (D)(2) or the emission unit does not exceed the RACT threshold

established in subsection (C)(1).

(EPNG)

Response: ADEQ has revised R18-2-334(G) to clarify that RACT need only be imposed on emissions units subject

to the standard under R18-2-334(C)(1).

Comment 37: The minor NSR program should allow netting. In the preamble to the proposed rule, ADEQ explicitly

states that “[t]he netting of increases against decreases to avoid minor NSR applicability is not allowed, except in the

case of the replacement of an existing emission unit with a new one.” 17 Ariz. Reg. at 2199. If this is truly a minor

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NSR program that is concerned about ambient impacts, then netting should be allowed because netting looks at the

ambient air impact of the proposed project in its entirety. By proposing to limit netting to just equipment replacement,

ADEQ implies that the purpose of this program is not just control of ambient air impacts, as required by 40 CFR

51.160, but also the assertion of state jurisdiction and, potentially, “reasonably available control technology” (RACT)

requirements even when there is no emissions increase or no significant impact on ambient air.

EPNG believes that exclusion of netting from the definition of “minor NSR modification” is not in Arizona’s longterm interest. Companies not only choose to change equipment when needed to enhance company operations but also

when those equipment changes can be made timely. Netting allows changes to occur in a more timely fashion because

burdensome case-by-case review potentially can be avoided by reducing emissions elsewhere at the source, so that

emissions impacts are reduced or eliminated. Companies will often choose to make emissions reductions greater than

what RACT might otherwise require to avoid the delay entailed by case-by-case review and public comment periods.

ADEQ’s proposed requirement in R18-2-301(12)(c) to apply minor NSR review and its corresponding RACT or

modeling evaluation even if netting occurs vitiates this incentive. ADEQ should recognize the incentive provided by

netting and allow it so that Arizona can gain the benefit of additional emissions reductions driven by companies seeking to move the permitting process along more rapidly.

While EPNG strongly supports the proposed allowance for netting for equipment replacements, EPNG also strongly

urges ADEQ to reconsider its proposed ban on other netting because of the delay that disallowing netting imposes

upon companies. Instead, ADEQ should revise its rule to allow netting and, if a company nets below the permit

exemption threshold, allow the project to proceed with administrative approval only (e.g., no public comment

period). Public comment is not needed for changes that are below the proposed permitting exemption threshold

because the impacts to ambient air are de minimis.

Accordingly, EPNG recommends that proposed R18-2-301(12)(c) be deleted. (EPNG)

Response: ADEQ disagrees that its proposal to disallow netting for minor NSR “implies that the purpose of this program is not just control of ambient air impacts.” ADEQ stated during the stakeholder process that its concerns about

netting were primarily administrative. The Air Quality Division Permit Section has had a great deal of experience in

administering the netting provisions of the major NSR program. The technical and legal issues raised by permit applications that seek to avoid major NSR through netting have been among the most complex and controversial that the

Department has had to deal with. At least two administrative considerations counsel against importing the complex

administrative requirements needed for a netting system into the minor NSR program. First, as noted in the ESBCIS,

minor NSR is expected to apply to relatively few permit applicants (approximately seven) each year. Second, the

requirements of minor NSR are much less stringent than those of major NSR. Indeed, as noted in the ESBCIS, ADEQ

anticipates that most sources subject to the program will not be required to meet any additional substantive requirements but will instead pass the SCREEN model or qualify for a safe-harbor RACT determination on the basis of an

already applicable standard. ADEQ therefore has concluded that on balance administration of the minor NSR program will be more efficient without a netting provision. 

If the minor NSR program proves to be more burdensome than ADEQ anticipates and it appears that allowing netting

could relieve some of that burden, ADEQ will be willing to reconsider this issue in the future. 

Comment 38: Public comment should be limited to minor NSR modifications that exceed the permit exemption

threshold. Consistent with EPNG’s comments above, EPNG believes that steps in the minor NSR process that make it

slower and more cumbersome should be avoided. In this case, ADEQ has determined that the permitting exemption

threshold represents a point below which the environmental impacts of a proposed change do not warrant any regulatory control. ADEQ should take this concept further and use it to determine when public comment is required. EPNG

strongly encourages ADEQ to require public comment periods only for those minor NSR modifications where the

final emissions increase exceeds the permitting exemption threshold. This is a good “bright line” rule that works well

with EPA guidance.

Accordingly, EPNG recommends that proposed R18-2-334(G) be revised by adding a new “3.” as follows:

3. The emissions increase for each regulated minor NSR pollutant is less than the permitting exemption threshold.

(EPNG)

Response: Since minor NSR will not apply unless the emissions increase for at least one regulated minor NSR pollutant equals or exceeds the permitting exemption threshold, this change is not necessary.

Comment 39: Registrations: Rules R18-2-302 and R18-2-302.01 use the phrase “emits or has the potential to emit,

without controls, other than elective limits or controls that have been or will be adopted under R18-2-301.01(F).” It is

our interpretation that ADEQ intends to determine registration and Class II applicability based on uncontrolled PTE.

Except that sources that want to avoid Class II permits may adopt limits on PTE under 302.01(F) and only have to

obtain registrations. The language as written in the rules is a bit confusing. We recommend including a definition for

“uncontrolled PTE” or “PTE uncontrolled” and include in the definition, as an example, “except for elective limits on

the potential to emit adopted under Rule R18-2-301.01(F) to qualify as a registration”. Rule R18-2-302(B)(2)(iii)

could then be rewritten to state: “any stationary source that emits or has an uncontrolled potential to emit significant

quantities of regulated NSR pollutants.” (EPA)

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Response: ADEQ agrees and has made the requested changes. The term “uncontrolled potential to emit” is now

included in R18-2-301, and this defined term has been substituted for “potential to emit, without controls, other than

elective limits or controls that have been or will be adopted under R18-2-301.01(F)” wherever that language appeared

in the proposed rules.

Comment 40: The rules must provide provisions to assure, pursuant to Section 173(c)(1) of the Clean Air Act, that

any emissions offsets obtained in conjunction with the issuance of a permit to a new or modified source must be

enforceable by the time of issuance of the permit, and in effect by the time the new or modified source commences

operation. We could not find a reference requiring the offset to be “in effect” by the time commences operation.

(EPA)

Response: ADEQ has made the requested changes.

Comment 41: The rules must provide provisions to assure that emissions increases from new or modified major stationary sources are offset by real reductions in actual emissions as required by Section 173(c)(1). Please make sure

the rules state more explicitly that the reductions must be real. (EPA)

Response: ADEQ has added this language to R18-2-404(A).

Comment 42: The rules must provide provisions, pursuant to 40 CFR 51.165(a)(1)(iv)(C), which require that fugitive emissions be included in the major source applicability determination if the source belongs to one of the source

categories listed in this section. Otherwise, fugitives may be excluded from the applicability determination for new

major sources and major modifications. (Current rule status given stay see 76 FR 17548 3/30/11.) In R18-2-403(E), it

appears fugitives are only excluded from applicability for categories that are not listed under section 302(j) of the

Clean Air Act if consideration of fugitives alone makes the source major. EPA would prefer that the rules state explicitly under the definition for major source that fugitives are required in the determination for whether the source is

major. (EPA)

Response: ADEQ has made the requested change.

Comment 43: The rules must provide provisions, pursuant to 40 CFR 51.165(a)(5)(i), which ensure a source is not

relieved of responsibility to comply with applicable provisions of the plan, and another other requirements under

local, State or Federal law. While we found this provision in R18-2-406. G for PSD, we could not find it for NNSR or

minor NSR. (EPA)

Response: ADEQ has made the requested changes.

Comment 44: The rules must provide provisions, pursuant to 40 CFR 51.165(a)(9), which requires the proper offset

ratios be required, based on an areas nonattainment classification. It appears that offsets are only required at 1 to 1 for

moderate ozone nonattainment instead of 1.15 to 1. (EPA)

Response: ADEQ has made the requested changes by adding new subsection (J) to R18-2-404.

Comment 45: The rules must provide provisions, pursuant to 40 CFR 51.165(a)(11), regarding the use of interpollutant offsets, if the rule allows the use of interpollutant offsets. We could not find such provisions, but it appears that the

rule does not allow the use of such interpollutant offsets. Please confirm. (EPA)

Response: The Arizona rules do not currently allow for inter-pollutant offsets.

Comment 46: R18-2-402.G.3 requires visibility requirements to be met in R18-2-410, but there is no 410. (EPA)

Response: R18-2-410 is an existing rule that was inadvertently omitted from the parallel processing SIP submission

sent to EPA. It has been provided by e-mail and will be included in the final submission.

Comment 47: R18-2-302.01(C)(2) has “may” review for some sources. Language needs to be more absolute. (EPA)

Response: The review specified in R18-2-302.01(C)(2) applies only to sources with uncontrolled PTE below the

level determined to be de minimis for purposes of the minor NSR program. Thus, it should not be objectionable to

EPA that the Director’s review of these sources is discretionary.

Comment 48: The rules must provide provisions, pursuant to 51.161(d), that require a copy of the notice required by

paragraph (b) of this section also be sent to the EPA, and to all other State and local air pollution control agencies having jurisdiction in the region in which such new or modified installation will be located. For lead, a copy of the notice

is required for all point sources. The definition of point source for lead is given in 40 CFR 51.100(k)(2). (EPA)

Response: ADEQ has added this language as new R18-2-334(H). It was not necessary to include language specific to

point sources of lead, since all sources subject to minor NSR will be covered by this provision.

Comment 49: R18-2-304.I.2.g - For Class II permit that contains voluntary emission limitations, controls, or other

requirements established pursuant to R18-2-306.01, the Director shall have complied with the requirement of R18-2-

306.01(C) to provide the Administrator with a copy of the proposed permit. However, there is no 306.01. In addition,

no requirements for registrations were found. (EPA)

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Response: R18-2-306.01 is an existing rule that was inadvertently omitted from the parallel processing SIP submission sent to EPA. It has been provided by e-mail and will be included in the final submission. Registrations may not

include voluntary emission limits, other than elective controls.

Comment 50: We could not find provisions in the rule regarding the use of good engineering practice for stack

heights as required by 40 CFR 51.164. (EPA)

Response: These provisions are in R18-2-332, which will be provided to EPA in the final SIP submission.

Comment 51: R18-2-101 definition of potential to emit – Recommend maintaining the “federally enforceable” language. Otherwise the definition needs to be revised to “legally and practically enforceable” and a definition for

“legally and practically enforceable” should be added. (EPA)

Response: As discussed in item 6 of the preamble, the state NSR program may be no more stringent than corresponding federal law. Since the CMA decision vacated the federal enforceability requirement, ADEQ may not include it in

the state definition of potential to emit. Consistent with the alternative recommendation, ADEQ has revised the definition to read: “legally and practically enforceable by the Department or a county under A.R.S. Title 49, Chapter 3;

any rule, ordinance, order or permit adopted or issued under A.R.S. Title 49, Chapter 3 or the state implementation

plan.”

Comment 52: R18-2-301 definition of minor NSR modification – the baseline for determining increases under this

definition is not clear. For minor NSR modifications at major sources the applicability test could be the same as the

test used for major NSR, since the source will already have to determine if major NSR applies (actual-to-potential).

For minor NSR modifications at minor sources an allowable to allowable test could be used. (EPA)

Response: Since a minor NSR modification is defined as an increase in potential to emit, baseline and future emissions are calculated as the source’s potential to emit before and after the change, respectively.

Comment 53: R18-2-101 definition of “actual emissions” – this definition allows Class II sources to use “applicable

control equipment requirements and projected conditions of operation” for emissions units that have not begun operation. These are not defined terms and it is not clear what is meant. We recommend the same definition used for Class

I permits of “potential to emit” be used for all permits and registration. (EPA)

Response: This element of the definition of actual emissions is not being amended in this rulemaking. It has been

part of ADEQ’s Class II permit rules for some time and has not presented any problems in the administration of the

program. It is used in R18-2-317.02, which addresses changes at a Class II source that do not require a permit revision. Although this section is being amended in the current rulemaking, it will not be included in the NSR SIP revision. It is also used in R18-2-320(B), which specifies when significant revisions are required for Class II sources.

Although R18-2-320 will be submitted as part of the SIP revision, subsection B plays no part in ADEQ’s major or

minor NSR program. Thus, this element of the definition does not affect any permit rules requiring approval by EPA.

Comment 54: R18-2-101 definition of “begin actual construction” – references to “title I, parts C and D and section

112 of the Act” may be more helpful if Rule R18-2-210 – Attainment, Nonattainment, and Unclassifiable Area Designations – were identified instead. Reading Section 112 of the Act will not provide the designations for Arizona to

the reader, or where to find them. This reference appears in other places as well. (EPA)

Response: The citation is not intended to refer to area designations in R18-2-210. Rather, the intent of this definition,

which duplicates the definition in state statute at A.R.S. § 49-401.01(7), is to apply two different definitions of “begin

actual construction” depending on the circumstances. The definition in subsection (a) is intended to apply to preconstruction review programs that are required to prohibit pre-permit construction activities consistent with the federal

definition of “begin actual construction,” as interpreted by EPA (i.e. major NSR and federal NSR requirements for

HAPs under section 112(g) of the Clean Air Act). These programs are designated by reference to the relevant Clean

Air Act provisions. The definition in subsection (b) applies to all other pre-construction review programs. 

Comment 55: R18-2-101 definition of categorically exempt activities – the cumulative horsepower rating for emergency engines appears quite high. A basis for this determination is needed. (EPA)

Response: The cumulative horsepower ratings established in R18-2-101(24)(d) were set at levels designed to assure

that total emissions of any regulated minor NSR pollutant from a group of engines with the specified rating will

remain below the permitting exemption threshold. ADEQ based this determination on AP-42 emission factors. 

For example, the highest regulated minor NSR pollutant emission factor listed in Table 3.3-1 for diesel industrial

engines is 0.031 lb/hp-hr for NOx

. The maximum annual emissions of any regulated minor NSR pollutant from an

emergency engine burning diesel and rated at 2,500 horsepower would therefore be 19.375 tons of NOx (500 hours *

2,500 hp * 0.31 lb/hp-hr * 1 ton/2,000 hr), which is below the permitting exemption threshold of 20 tons per year. 

The limits in (d) were derived in the same manner as the limits for non-emergency engines in (a) through (c), but

since emergency engines by rule may operate for only 500 hours per year, the horsepower ratings are proportionally

higher.

Comment 56: R18-2-101 definition of “federal applicable requirement” – definition contains the phrase “as they

apply to emissions units covered by Class I or II permits.” We note that Registrations may also have federally appliAPPENDIX A - NFRM
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cable requirements; however, this statement seems unnecessary. Federal applicable requirements apply regardless of

whether the source obtains a permit or registration. (EPA)

Response: ADEQ agrees and has deleted this language as being unnecessary.

Comment 57: R18-2-101 definition of “hazardous air pollutant” – this definition should state where the federally

listed HAPs can be found. (EPA)

Response: This reference can be found in the definition of “federally listed hazardous air pollutants” at R18-2-

101(54).

Comment 58: R18-2-101 definition of “stationary source” – contains a definition for building, structure, facility, and

installation. This definition should be separate. (EPA)

Response: Since the term “building, structure, facility, and installation” is used only in the definition of stationary

source, ADEQ believes it is easier to keep the definition as it is. The definition of the term is identical to EPA’s and

should not raise any approvability issues.

Comment 59: R18-2-l 01(23) - The exemptions under subparagraphs (a) and (e) appear to offer an open invitation to

the proliferation of backyard co-generation. Has ADEQ considered the potential consequence of that policy choice?

(Pinal County Air Quality Control District, “PCAQCD”)

Response: As explained in response to comment 55, the horsepower ratings are set at levels designed to assure that

emissions of regulated minor NSR pollutants do not exceed the permitting exemption threshold. The same is true of

the Btu/hr limit in R18-2-101(23)(e). In R18-2-302(C)(1) and R18-2-301(12), sources and modifications consisting

solely of a categorically exempt activity are exempt from permitting/registration and minor NSR, respectively. The

term is not used in any other provision.

Thus, any activity that is exempt under R18-2-101(23) will in any case be exempt from permitting, registration and

minor NSR if its emissions are calculated and compared to the permitting exemption threshold. The sole purpose of

the exemptions is to obviate the need for some sources (those consisting solely of combustion units) to make this calculation. Moreover, as explained in item 6 above, the permitting exemption threshold is lower than the current emissions threshold for obtaining a permit. Thus, even if the amended rules “offer[ed] an open invitation to the

proliferation of backyard co-generation,” they would be less inviting than the current rules. ADEQ is not aware of

any evidence that backyard cogeneration has proliferated under the existing program.

Comment 60: R18-2-101.99 - “De miminis” appears to constitute an undefined term. (PCAQCD)

Response: This comment is correct. The definition of modification is a duplicate of the statutory definition at A.R.S.

§ 49-401.01(24). The term de minimis is not defined there or elsewhere in statute.

ADEQ interprets the phrase “relevant de minimis amount” in the definition as a reference to the regulatory thresholds

for specific types of modifications. Thus for minor NSR modifications, the relevant de minimis amounts are the permitting exemption thresholds. For major modifications, the relevant de minimis amounts are the significant levels. In

the absence of de minimis amounts established by rule for a specific program, there can be no modification subject to

the permit or registration programs under R18-2-302(A).

Comment 61: R18-2-101(153) - It’s unclear whether the definition is meant to apply to burning clean firewood.

Moreover, it also appears that the definition of “wood waste burner” is not used anywhere. (PCAQCD)

Response: The term is used in existing R18-2-704, which establishes standards for incinerators. Neither that section

nor the definition is being amended in this rulemaking.

Comment 62: R18-2-302(2)(a) - Will the applicant’s declaration of intent suffice to invoke the future effect of controls to be adopted under R18-2-302.01(F)? (PCAQCD)

Response: No. As stated in R18-2-302.01(F), both the elective limits and the monitoring requirements specified by

that subsection must be included in the registration.

Comment 63: R18-2-302(B) - Subparagraphs (3) and (4) seem to require that before the registration program is SIPapproved, EPA-approved wood stoves will require a Class II permit, and after SIP-approval those wood stoves will

require a registration. Is that the intent? (PCAQCD)

Response: No. Some wood stoves subject to the EPA NSPS may require registration or even a permit, but others will

be exempt. 

Section R18-2-302(B)(4)(b)(i) provides that a registration is required for a source subject to a section 111 standard,

“except that a stationary sources is not required to register solely because it is subject to ... 40 CFR, Subpart AAA

(Residential Wood Heaters).” (Emphasis added.) Thus, wood stoves that meet EPA’s NSPS are exempt from registration, unless their uncontrolled potential to emit exceeds the permitting exemption thresholds. A wood stove located at

a source with an uncontrolled potential to emit above the permitting exemption threshold would be required to register under R18-2-302(B)(4)(a) and not solely because it is subject to Subpart AAA. That stove would not be eligible

for the exemption in (B)(4)(b)(i).

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It should be noted that the above discussion assumes that the initial condition for registration applicability – “unless a

Class I or II permit is required” – is satisfied. If a wood stove were located at a source with emissions above the Class

I or II thresholds, it would require a permit and not registration. As discussed in item 6 above, permit and registration

applicability should be assessed top to bottom.

As proposed, R18-2-302(B)(3) would have provided that until EPA approval of the new registration program, a permit would be required for “any of the activities identified in subsections (B)(4)(b) and (c).” This provision was less

than clear. NSPS-compliant wood stoves were in a sense “identified” in R18-2-302(B)(4)(b)(i), although solely for

purposes of making them exempt from registration. The intent is that any activity exempt from registration after EPA

approval should be exempt from permitting before approval. ADEQ therefore has revised the final rule language to

provide that before approval, a Class II permit “shall be required for any of the activities that would require a registration under subsections (B)(4)(b) and (c).”

Comment 64: R18-2-302.01 - Taken as a whole, the proposal does not explain how the registration program will be

funded. (PCAQCD)

Response: As noted in the ESBCIS, ADEQ intends to amend the permit fee rule to add fees that will cover the costs

of the registration program. ADEQ anticipates that it will be able to complete this rulemaking before EPA approves

the program and it goes into effect.

Comment 65: R18-2-302.01.G - To avoid inadvertently triggering a Class II permit requirement, the registration

revision provisions should include a cross-reference to the Class II permit applicability “significant emission” threshold in R18-2-302(B)(2)(a). (PCAQCD)

Response: ADEQ agrees that it would be advisable to remind registrants reading this rule that they must assess

whether a modification takes their emissions above the thresholds for Class II permit applicability. ADEQ therefore

has added the phrase “Unless a Class II permit is required under R18-2-302(B)(2)(b)” to the beginning of R18-2-

302.01(G).

Comment 66: R18-2-303 - The implementation dates of 1/11/12 and 3/11/12 don’t seem realistic. (PCAQCD)

Response: This comment is correct. ADEQ has extended the dates to September 1, 2012 and December 1, 2012.

Comment 67: Since the minor NSR, PSD and nonattainment NSR provisions of this package are intended to satisfy

different mandates under the Clean Air Act and 40 CFR 60, it would assist in future reference if ADEQ could include

a table indicating which rule revisions are intended to satisfy which of the respective Federal mandates. (PCAQCD)

Response: ADEQ is preparing a SIP document that includes such a table and will make that submittal available to the

public on submission to EPA.

Comment 68: While MCAQD generally supports ADEQ’s proposed rules, MCAQD is concerned that ADEQ’s proposals do not fully address the peculiar local conditions leading to nonattainment of the National Ambient Air Quality

Standards (NAAQS) in Maricopa County’s ozone and particulate matter nonattainment areas. MCAQD asks that

ADEQ confirm that its analysis for this proposed NSR rulemaking concentrates on the air quality challenges, topography, meteorology and the source types and sizes present in those portions of the state over which ADEQ has jurisdiction. In some instances, ADEQ’s proposals may not provide for adequate protection of the NAAQS, effective

implementation of control measures for nonattainment area plans submitted for Maricopa County, or provide a level

playing field for all sources located in the county. Our concerns with specific elements contained in the proposed

rulemaking are listed below. (Maricopa County Air Quality Control District, “MCAQD”)

Response: ADEQ confirms that the amendments to the state’s NSR program are designed to meet federal Clean Air

Act requirements solely for the areas subject to ADEQ’s jurisdiction and may not be sufficient to meet those requirements for the nonattainment areas subject to MCAQD’s jurisdiction. The legal requirements applicable to county programs are discussed in the “County NSR Program” section of item 6 of this preamble.

Comment 69: In the proposed rulemaking preamble, ADEQ estimates that it will conduct a combination of complaint-based and audit inspections of 10% of registered sources per year. The proposed inspection frequency of 10%

per year of registered sources will not satisfy the federal practical enforceability guidance for nonattainment area control measures or allow Maricopa County to demonstrate that it has adequate resources to implement the control measures in the existing nonattainment area SIPs. (MCAQD)

Response: ADEQ believes that the inspection program described in the preamble will be adequate for the sources

that will be subject to the state registration program. The primary purpose of the registration program is to serve as a

screening mechanism for minor NSR. If ADEQ determines during the registration process that a source poses a threat

to the NAAQS, that source will be required to obtain a permit under R18-2-302.01(C)(4) and will be subject to the

inspection program for permitted sources. Thus, sources subject to the complaint and audit-based program for registered sources will consist solely of those facilities that do not pose a threat to NAAQS compliance. Periodic inspections for these sources in the areas under ADEQ’s jurisdiction would not be justified.

On the other hand, Maricopa County is much more densely populated and generally has more severe air quality problems than the areas subject to ADEQ jurisdiction. Lower emission thresholds for permitting and periodic inspections

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may therefore be appropriate in the county’s program, to the extent they are consistent with the county’s statutory

authority. 

Comment 70: In Maricopa County’s nonattainment areas, many rules already require the installation of control technology. Allowing the installation of controls to avoid a permit and obtain a registration may raise equity concerns

and, practically, is only an option for very simple sources whose emissions do not contain hazardous air pollutants.

(MCAQD)

Response: As discussed in the section on “County NSR Programs” in item 6 of this preamble, ADEQ agrees that

Maricopa County’s control technology requirements need not be identical to the states. 

ADEQ does not agree that allowing installation of controls to avoid having to obtain a permit raises equity concerns,

when, as in the new registration program, the same options are available to all similarly situated sources. 

ADEQ believes that the parameters of the elective control provision in R18-2-302.01(F) are appropriate for the areas

and sources subject to the state’s jurisdiction.

Comment 71: The proposed rules contain provisions for minor sources that allow control technology to be optional if

a modeling analysis is submitted. First, these provisions are not appropriate for nonattainment areas that are required

by the Clean Air Act to implement reasonably available control technology (RACT) or best available control measures (BACM), depending on the pollutant. Second, modeling to determine minor source impacts on the NAAQS is

not technically feasible in ozone nonattainment areas. Third, implementing control technology at the time of installation can result in better environmental results at lower costs than retrofitting sources later, a significant factor to consider in nonattainment areas that experience significant growth while working to attain and maintain the federal

NAAQS. Finally, the optional control provisions may not provide a level playing for all sources locating or located in

the county. MCAQD firmly believes in operating a fair and equitable regulatory program by balancing the environmental and economic needs of the county. (MCAQD)

Response: ADEQ disagrees that the modeling option is not appropriate for nonattainment areas that are subject to

RACT or BACM requirements. The RACT and BACM requirements imposed by the Clean Air Act on existing

sources in nonattainment areas (see for example sections 172(c)(1) and 189(b)(1)(B) of the Act) are separate from the

minor NSR requirements addressed by this rulemaking. While it may be possible to satisfy the RACT and BACM

requirements in part through a new source review program, there is no requirement to do so. 

ADEQ agrees that modeling to determine minor source impacts on the ozone NAAQS is not feasible. There is no

model available to predict the impact of individual sources on ozone concentrations. Sources of ozone precursors

subject to minor NSR therefore will generally not be able to avail themselves of the modeling option in R18-2-

334(C)(2).

ADEQ agrees that installing controls at construction or modification of a source is generally preferable to requiring

that they be retrofitted for the reasons given in the comment. However, controls should only be required when necessary. If modeling demonstrates that controls are not necessary to protect the NAAQS, and they are not otherwise

required by rule, then they should not be imposed on a new source.

ADEQ also agrees that allowing the modeling option may not provide a level playing field for sources located in

ADEQ’s jurisdiction or the county’s. Theoretically, one source might be able to model no impact and escape controls,

while its competitor building a nearly identical facility in an area with worse air quality is required to install RACT.

There will always be some trade-off between equity and allowing exemptions to reduce the stringency and overall

cost of a rule. In ADEQ’s judgment, bolstered by stakeholder input, the rule amendments strike the proper balance for

the areas under state jurisdiction.

12. All agencies shall list other matters prescribed by statute applicable to the specific agency or to any specific rule or

class of rules. Additionally, an agency subject to Council review under A.R.S. §§ 41-1052 and 41-1055 shall respond

to the following questions:

There are no other matters prescribed by statute applicable specifically to ADEQ or this specific rulemaking.

a. Whether the rule requires a permit, whether a general permit is used and if not, the reasons why a general permit is not used:

The rule requires permits as described in item 6 above. A general permit may be used to satisfy minor NSR

requirements established by this rule. Federal law does not allow the enforcement of major NSR requirements

through issuance of general permits, because major NSR requires case-by-case, facility-specific determinations. 

b. Whether a federal law is applicable to the subject of the rule, whether the rule is more stringent than federal

law and if so, citation to the statutory authority to exceed the requirements of federal law:

The federal Clean Air Act and implementing regulations adopted by EPA apply to the subject of this rule, as

described in item 6 above. The rule is no more stringent than required by federal law. 

c. Whether a person submitted an analysis to the agency that compares the rule’s impact of the competitiveness

of business in this state to the impact on business in other states:

No such analysis was submitted. 

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13. A list of any incorporated by reference material as specified in A.R.S. § 41-1028 and its location in the rules:

14. Whether the rule was previously made, amended, or repealed as an emergency rule. If so, cite the notice published

in the Register as specified in R1-1-409(A). Also, the agency shall state where the text was changed between the

emergency and the final rulemaking packages:

No

15. The full text of the rule follows:

TITLE 18. EVIROMETAL QUALITY

CHAPTER 2. DEPARTMET OF EVIROMETAL QUALITY

AIR POLLUTIO COTROL

ARTICLE 1. GEERAL

Section

R18-2-101 Definitions

R18-2-102 Incorporated Materials

ARTICLE 2. AMBIET AIR QUALITY STADARDS; AREA DESIGATIOS; CLASSIFICATIOS

Section

R18-2-201. Particulate matter Matter: PM10 and PM2.5

R18-2-202. Sulfur oxide (sulfur dioxide) Oxide (Sulfur Dioxide)

R18-2-203. Ozone: 1-hour standard and 8-hour averaged standard One-hour Standard and Eight-hour Average Standard

R18-2-205. Nitrogen dioxide Oxides (Nitrogen Dioxide)

R18-2-206. Lead

R18-2-210. Attainment, Nonattainment, and Unclassifiable Area Designations

R18-2-218. Limitation of Pollutants in Classified Attainment Areas

R18-2-219. Violations Repealed

ARTICLE 3. PERMITS AD PERMIT REVISIOS

Section

R18-2-301. Definitions

R18-2-302. Applicability; Registration; Classes of Permits

R18-2-302.01. Source Registration Requirements

R18-2-303. Transition from Installation and Operating Permit Program to Unitary Permit Program; Registration Transition; Minor NSR Transition

R18-2-304. Permit Application Processing Procedures

R18-2-310.01. Reporting Requirements

R18-2-317. Facility Changes Allowed Without Permit Revisions - Class I

R18-2-317.01. Facility Changes that Require a Permit Revision - Class II

R18-2-317.02. Procedures for Certain Changes that do not Do Not Require a Permit Revision - Class II

Incorporation Location in Rule

Arizona Testing Manual R18-2-102(1)

ASTM test methods referenced in specific rules:

ASTM D-388-91

ASTM D-396-90a

ASTM D388-77, 90, 91, 95, or 98a

ASTM D-396-90a, D-2880-90a, D-975-90

ASTM D-323-90

ASTM D-129-91

ASTM D-1072-90

R18-2-102(2)

R18-2-101(29)

R18-2-301(9)

R18-2-701(8)

R18-2-701(36)

R18-2-701(42)

R18-2-719(K)(1)(b), (2)(a)

R18-2-719(K)(1)(c), (2)(b)

Standard Industrial Classification Manual R18-2-102(3)

40 CFR 81.303 R18-2-210

AP-42 Emission Factors R18-2-327(C)(3)

40 CFR 51, Appendix W R18-2-406(A)(6)

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R18-2-319. Minor Permit Revisions

R18-2-320. Significant Permit Revisions

R18-2-321. Permit Reopenings; Revocation and Reissuance; Termination

R18-2-324. Portable Sources

R18-2-327. Annual Emissions Inventory Questionnaire

R18-2-330. Public Participation

R18-2-334. Minor New Source Review

ARTICLE 4. PERMIT REQUIREMETS FOR EW MAJOR SOURCES AD MAJOR MODIFICATIOS TO 

EXISTIG MAJOR SOURCES

Section

R18-2-401. Definitions

R18-2-402. General

R18-2-403. Permits for Sources Located in Nonattainment Areas

R18-2-404. Offset and Net Air Quality Benefit Standards

R18-2-405. Special Rule for Major Sources of VOC or Nitrogen Oxides of Nitrogen in Ozone Nonattainment Areas Classified as Serious or Severe

R18-2-406. Permit Requirements for Sources Located in Attainment and Unclassifiable Areas

R18-2-407. Air Quality Impact Analysis and Monitoring Requirements 

R18-2-411. Special Rule for Non-operating Sources of Sulfer Dioxide Nonattainment Areas Repealed

R18-2-412. PALs

ARTICLE 5. GEERAL PERMITS

Section

R18-2-502. General Permit Development

R18-2-503. Application for Coverage under General Permit

R18-2-505. General Permit Renewal

R18-2-512. Changes to Facilities Granted Coverage under General Permits

R18-2-513. Portable Sources Covered under a General Permit

ARTICLE 6. EMISSIOS FROM EXISTIG AD EW OPOIT SOURCES 

Section

R18-2-614. Evaluation of Nonpoint Source Emissions

ARTICLE 7. EXISTIG STATIOARY SOURCE PERFORMACE STADARDS

Section

R18-2-701. Definitions

R18-2-719. Standards of Performance for Existing Stationary Rotating Machinery

ARTICLE 1. GEERAL

R18-2-101. Definitions

In addition to the definitions prescribed in A.R.S. §§ 49-101, 49-401.01, 49-421, 49-471, and 49-541, in this Chapter, unless

otherwise specified: The following definitions apply to this Chapter. Where the same term is defined in this Section and in the

definitions Section for an Article of this Chapter, the Article-specific definition shall apply.

1. “Act” means the Clean Air Act of 1963 (P.L. 88-206; 42 U.S.C. 7401 through 7671q) as amended by the Clean Air

Act Amendments of 1990 (P.L. 101-549) through December 31, 2011 (and no future editions).

2. “Actual emissions” means the actual rate of emissions of a regulated NSR pollutant from an emissions unit, as determined in subsections (2)(a) through (e).

a. In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit

actually emitted the pollutant during a two-year consecutive 24-month period that precedes the particular date

and that is representative of normal source operation. The Director may allow the use of a different time period

upon a demonstration determination that it is more representative of normal source operation. Actual emissions

shall be calculated using the unit’s actual operating hours, production rates, and types of materials processed,

stored or combusted during the selected time period.

b. If there is inadequate information to determine actual historical emissions, the The Director may presume that

source-specific allowable emissions for the unit are equivalent to the actual emissions of the unit.

c. For any emissions unit at a Class I source, other than an electric utility steam generating unit in subsection (e),

that has not begun normal operations on the particular date, actual emissions shall equal the unit’s potential to

emit on that date.

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d. For any emissions unit at a Class II source that has not begun normal operations on the particular date, actual

emissions shall be based on applicable control equipment requirements and projected conditions of operation.

e. This definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL. Instead, the definitions of projected actual emissions and baseline actual emissions in R18-2-401

shall apply for those purposes. For an electric utility steam generating unit (other than a new unit or the replacement of an existing unit), actual emissions of the unit following the physical or operational change shall equal the

representative actual annual emissions of the unit, if the source owner or operator maintains and submits to the

Director, on an annual basis for a period of five years from the date the unit resumes regular operation, information demonstrating that the physical or operational change did not result in an emissions increase. A longer

period, not to exceed 10 years, may be required by the Director if the Director determines the longer period to be

more representative of normal source post-change operations.

3. “Administrator” means the Administrator of the United States Environmental Protection Agency.

4. “Affected facility” means, with reference to a stationary source, any apparatus to which a standard is applicable.

5. “Affected source” means a source that includes one or more units which are subject to emission reduction requirements or limitations under Title IV of the Act.

6. “Affected state” means any state whose air quality may be affected by a source applying for a permit, permit revision,

or permit renewal and that is contiguous to Arizona or that is within 50 miles of the permitted source.

7. “Afterburner” means an incinerator installed in the secondary combustion chamber or stack for the purpose of incinerating smoke, fumes, gases, unburned carbon, and other combustible material not consumed during primary combustion.

8. “Air contaminants” means smoke, vapors, charred paper, dust, soot, grime, carbon, fumes, gases, sulfuric acid mist

aerosols, aerosol droplets, odors, particulate matter, wind-borne matter, radioactive materials, or noxious chemicals,

or any other material in the outdoor atmosphere.

8.9. “Air curtain destructor” means an incineration device designed and used to secure, by means of a fan-generated air

curtain, controlled combustion of only wood waste and slash materials in an earthen trench or refractory-lined pit or

bin.

10. “Air pollution” means the presence in the outdoor atmosphere of one or more air contaminants or combinations

thereof in sufficient quantities, which either alone or in connection with other substances by reason of their concentration and duration are or tend to be injurious to human, plant or animal life, or cause damage to property, or

unreasonably interfere with the comfortable enjoyment of life or property of a substantial part of a community, or

obscure visibility, or which in any way degrade the quality of the ambient air below the standards established by the

director. A.R.S. § 49-421(2).

9.11. “Air pollution control equipment” means equipment used to eliminate, reduce or control the emission of air pollutants into the ambient air.

10.12. “Air quality control region” (AQCR) means an area so designated by the Administrator pursuant to Section 107 of

the Act and includes the following regions in Arizona:

a. Maricopa Intrastate Air Quality Control Region which is comprised of the County of Maricopa.

b. Pima Intrastate Air Quality Control Region which is comprised of the County of Pima.

c. Northern Arizona Intrastate Air Quality Control Region which encompasses the counties of Apache, Coconino,

Navajo, and Yavapai.

d. Mohave-Yuma Intrastate Air Quality Control Region which encompasses the counties of La Paz, Mohave, and

Yuma.

e. Central Arizona Intrastate Air Quality Control Region which encompasses the counties of Gila and Pinal.

f. Southeast Arizona Intrastate Air Quality Control Region which encompasses the counties of Cochise, Graham,

Greenlee, and Santa Cruz.

11.13. “Allowable emissions” means the emission rate of a stationary source calculated using both the maximum rated

capacity of the source, unless the source is subject to federally enforceable limits which restrict the operating rate or

hours of operation, and the most stringent of the following:

a. The applicable New Source Performance Standards or National Emission Standards for Hazardous Air Pollutants, as contained in Articles 9 or 11 of this Chapter standards as set forth in 40 CFR 60, 61 or 63;

b. The applicable existing source performance standard, as approved for the SIP and contained in Article 7 of this

Chapter; or,

c. The emissions rate specified in any federally promulgated rule or federally enforceable permit conditions applicable to the state of Arizona stationary source.

12.14. “Ambient air” means that portion of the atmosphere, external to buildings, to which the general public has access.

13.15. “Applicable implementation plan” means those provisions of the state implementation plan approved by the

Administrator or a federal implementation plan promulgated for Arizona or any portion of Arizona in accordance

with Title I of the Act.

14.16. “Applicable requirement” means any of the following:

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a. Any federal applicable requirement.

b. Any other requirement established pursuant to this Chapter or A.R.S. Title 49, Chapter 3.

15.17. “Arizona Testing Manual” means sections 1 and 7 of the Arizona Testing Manual for Air Pollutant Emissions

amended as of March 1992 (and no future editions).

16.18. “ASTM” means the American Society for Testing and Materials.

17.19. “Attainment area” means an area so designated by the Administrator acting pursuant to Section 107 of the Act as

having ambient air pollutant concentration equal to or less than national primary or secondary ambient air quality

standards for a particular pollutant or pollutants any area in the state that has been identified in regulations promulgated by the Administrator as being in compliance with national ambient air quality standards.

18.20. “Begin actual construction” means, in general, initiation of physical on-site construction activities on an emissions

unit which are of a permanent nature. Such activities include installation of building supports and foundations, laying

of underground pipework, and construction of permanent storage structures. With respect to a change in method of

operation this term refers to those onsite activities, other than preparatory activities, which mark the initiation of the

change.

a. For purposes of title I, parts C and D and section 112 of the clean air act, and for purposes of applicants that

require permits containing limits designed to avoid the application of title I, parts C and D and section 112 of the

clean air act, these activities include installation of building supports and foundations, laying of underground

pipework, and construction of permanent storage structures but do not include any of the following, subject to

subsection (20)(c):

i. Clearing and grading, including demolition and removal of existing structures and equipment, stripping and

stockpiling of topsoil.

ii. Installation of access roads, driveways and parking lots.

iii. Installation of ancillary structures, including fences, office buildings and temporary storage structures, that

are not a necessary component of an emissions unit or associated air pollution control equipment for which

the permit is required.

iv. Ordering and onsite storage of materials and equipment.

b. For purposes other than those identified in subsection (20)(a), these activities do not include any of the following, subject to subsection (20)(c):

i. Clearing and grading, including demolition and removal of existing structures and equipment, stripping and

stockpiling of topsoil and earthwork cut and fill for foundations.

ii. Installation of access roads, parking lots, driveways and storage areas.

iii. Installation of ancillary structures, including fences, warehouses, storerooms and office buildings, provided

none of these structures impacts the design of any emissions unit or associated air pollution control equipment.

iv. Ordering and onsite storage of materials and equipment.

v. Installation of underground pipework, including water, sewer, electric and telecommunications utilities.

vi. Installation of building and equipment supports, including concrete forms, footers, pilings, foundations,

pads and platforms, provided none of these supports impacts the design of any emissions unit or associated

air pollution control equipment.

c. An applicant’s performance of any activities that are excluded from the definition of “begin actual construction”

under subsection (20)(a) or (b) shall be at the applicant’s risk and shall not reduce the applicant’s obligations

under this Chapter. The director shall evaluate an application for a permit or permit revision and make a decision on the same basis as if the activities allowed under subsection (20)(a) or (b) had not occurred. A.R.S. § 49-

401.01(7).

19.21. “Best available control technology” (BACT) means an emission limitation, including a visible emissions standard,

based on the maximum degree of reduction for each air regulated NSR pollutant listed in R18-2-101(97)(a) which

would be emitted from any proposed major source or major modification, taking into account energy, environmental,

and economic impact and other costs, determined by the Director in accordance with R18-2-406(A)(4) to be achievable for such source or modification.

20.22. “Btu” means British thermal unit, which is the quantity of heat required to raise the temperature of one pound of

water 1°F.

23. “Categorical sources” means the following classes of sources:

a. Coal cleaning plants with thermal dryers;

b. Kraft pulp mills;

c. Portland cement plants;

d. Primary zinc smelters;

e. Iron and steel mills;

f. Primary aluminum ore reduction plants;

g. Primary copper smelters;

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h. Municipal incinerators capable of charging more than 250 tons of refuse per day;

i. Hydrofluoric, sulfuric, or nitric acid plants;

j. Petroleum refineries;

k. Lime plants;

l. Phosphate rock processing plants;

m. Coke oven batteries;

n. Sulfur recovery plants;

o. Carbon black plants using the furnace process;

p. Primary lead smelters;

q. Fuel conversion plants;

r. Sintering plants;

s. Secondary metal production plants;

t. Chemical process plants, which shall not include ethanol production facilities that produce ethanol by natural fermentation included in North American Industry Classification System codes 325193 or 312140;

u. Fossil-fuel boilers, combinations thereof, totaling more than 250 million Btus per hour heat input;

v. Petroleum storage and transfer units with a total storage capacity more than 300,000 barrels;

w. Taconite preprocessing plants;

x. Glass fiber processing plants;

y. Charcoal production plants;

z. Fossil-fuel-fired steam electric plants and combined cycle gas turbines of more than 250 million Btus per hour

heat input.

24. “Categorically exempt activities” means any of the following:

a. Any combination of diesel-, natural gas- or gasoline-fired engines with cumulative power equal to or less than

145 horsepower.

b. Natural gas-fired engines with cumulative power equal to or less than 155 horsepower.

c. Gasoline-fired engines with cumulative power equal to or less than 200 horsepower.

d. Any of the following emergency or stand-by engines used for less than 500 hours in each calendar year, provided

the permittee keeps records documenting the hours of operation of the engines:

i. Any combination of diesel-, natural gas- or gasoline-fired emergency engines with cumulative power equal

to or less than 2,500 horsepower.

ii. Natural gas-fired emergency engines with cumulative power equal to or less than 2,700 horsepower.

iii. Gasoline-fired emergency engines with cumulative power equal to or less than 3,700 horsepower.

e. Any combination of boilers with a cumulative maximum design heat input capacity of less than 10 million Btu/

hr.

23.25. “CFR” means the Code of Federal Regulations, amended as of July 1, 2011, (and no future editions), with standard

references in this Chapter by Title and Part, so that “40 CFR 51” means “Title 40 of the Code of Federal Regulations,

Part 51.”

22.26. “Charge” means the addition of metal bearing materials, scrap, or fluxes to a furnace, converter or refining vessel.

23.27. “Clean coal technology” means any technology, including technologies applied at the precombustion, combustion,

or post-combustion stage, at a new or existing facility that will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen associated with the utilization of coal in the generation of electricity, or process

steam, that was not in widespread use as of November 15, 1990.

24.28. “Clean coal technology demonstration project” means a project using funds appropriated under the heading

“Department of Energy - Clean Coal Technology,” up to a total amount of $2,500,000,000 for commercial demonstration of clean coal technology or similar projects funded through appropriations for the Environmental Protection

Agency. The federal contribution for a qualifying project shall be at least 20% of the total cost of the demonstration

project.

25.29. “Coal” means all solid fossil fuels classified as anthracite, bituminous, subbituminous, or lignite by ASTM D-388-

91, (Classification of Coals by Rank).

26.30. “Combustion” means the burning of matter.

27.31. “Commence” means, as applied to construction of a source, or a major modification as defined in Article 4 of this

Chapter, that the owner or operator has all necessary preconstruction approvals or permits and either has:

a. Begun, or caused to begin, a continuous program of actual on-site onsite construction of the source, to be completed within a reasonable time; or

b. Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed

within a reasonable time.

28.32. “Construction” means any physical change or change in the method of operation, including fabrication, erection,

installation, demolition, or modification of an emissions unit, which would result in a change in actual emissions.

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29.33. “Continuous monitoring system” or “continuous emission monitoring system” means the total equipment, required

under the emission monitoring provisions in this Chapter, used to sample and, if applicable, to condition, to analyze,

and to provide, on a continuous basis, a permanent record of emission or process parameters a CEMS, CERMS, or

CPMS.

34. “Continuous emissions monitoring system” or “CEMS” means the total equipment, required under the emission monitoring provisions in this Chapter, used to sample, condition (if applicable), analyze, and to provide, on a continuous

basis, a permanent record of emissions.

35. “Continuous emissions rate monitoring system” or “CERMS” means the total equipment required for the determination and recording of the pollutant mass emissions rate (in terms of mass per unit of time).

36. “Continuous parameter monitoring system” or “CPMS” means the total equipment, required under the emission monitoring provisions in this Chapter, to monitor process or control device operational parameters or other information

and to provide, on a continuous basis, a permanent record of monitored values.

30.37. “Controlled atmosphere incinerator” means one or more refractory-lined chambers in which complete combustion

is promoted by recirculation of gases by mechanical means.

38. “Conventional air pollutant” means any pollutant for which the Administrator has promulgated a primary or secondary national ambient air quality standard. A.R.S. § 49-401.01(12).

39. “Department” means the Department of Environmental Quality. A.R.S. § 49-101(2)

40. “Director” means the director of environmental quality who is also the director of the department. A.R.S. § 49-

101(3).

31.41. “Discharge” means the release or escape of an effluent from a source into the atmosphere.

32.42. “Dust” means finely divided solid particulate matter occurring naturally or created by mechanical processing, handling or storage of materials in the solid state.

33.43. “Dust suppressant” means a chemical compound or mixture of chemical compounds added with or without water

to a dust source for purposes of preventing air entrainment.

34.44. “Effluent” means any air contaminant which is emitted and subsequently escapes into the atmosphere.

35.45. “Electric utility steam generating unit” means any steam electric generating unit that is constructed for the purpose

of supplying more than one-third of its potential electric output capacity and more than 25 MW electrical output to

any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of

providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility.

36.46. “Emission” means an air contaminant or gas stream, or the act of discharging an air contaminant or a gas stream,

visible or invisible.

37.47. “Emission standard” or “emission limitation” means a requirement established by the state, a local government, or

the Administrator which limits the quantity, rate, or concentration of emissions of air pollutants on a continuous basis,

including any requirements which limit the level of opacity, prescribe equipment, set fuel specifications, or prescribe

operation or maintenance procedures for a source to assure continuous emission reduction.

38.48. “Emissions unit” means any part of a stationary source which emits or would have the potential to emit any regulated air pollutant and includes an electric steam generating unit.

39.49. “Equivalent method” means any method of sampling and analyzing for an air pollutant which has been demonstrated under R18-2-311(D) to have a consistent and quantitatively known relationship to the reference method, under

specified conditions.

40.50. “Excess emissions” means emissions of an air pollutant in excess of an emission standard as measured by the compliance test method applicable to such emission standard.

41. “Existing source” means any source which does not have an applicable new source performance standard under Article 9 of this Chapter.

42.51. “Federal applicable requirement” means any of the following as they apply to emissions units covered by a Class I

or II permit (including requirements that have been promulgated or approved by EPA through rulemaking at the time

of issuance but have future effective compliance dates):

a. Any standard or other requirement provided for in the applicable implementation plan approved or promulgated

by EPA through rulemaking under Title I of the Act that implements the relevant requirements of the Act, including any revisions to that plan promulgated in 40 CFR 52.

b. Any term or condition of any preconstruction permits issued pursuant to regulations approved or promulgated

through rulemaking under Title I, including parts C or D, of the Act.

c. Any standard or other requirement under Section section 111 of the Act, including Section 111(d).

d. Any standard or other requirement under Section section 112 of the Act, including any requirement concerning

accident prevention under Section section 112(r)(7) of the Act.

e. Any standard or other requirement of the acid rain program under Title IV of the Act or the regulations promulgated thereunder and incorporated pursuant to R18-2-333.

f. Any requirements established pursuant to Section section 504(b) or Section section 114(a)(3) of the Act.

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g. Any standard or other requirement governing solid waste incineration, under Section section 129 of the Act.

h. Any standard or other requirement for consumer and commercial products, under Section section 183(e) of the

Act.

i. Any standard or other requirement for tank vessels under Section section 183(f) of the Act.

j. Any standard or other requirement of the program to control air pollution from outer continental shelf sources,

under Section section 328 of the Act.

k. Any standard or other requirement of the regulations promulgated to protect stratospheric ozone under Title VI

of the Act, unless the Administrator has determined that such requirements need not be contained in a Title V

permit.

l. Any national ambient air quality standard or increment or visibility requirement under Part C of Title I of the

Act, but only as it would apply to temporary sources permitted pursuant to Section section 504(e) of the Act.

43.52. “Federal Land Manager” means, with respect to any lands in the United States, the secretary of the department with

authority over such lands.

44.53. “Federally enforceable” means all limitations and conditions which are enforceable by the Administrator under the

Act, including all of the following:

a. The requirements of the New Source Performance Standards and National Emission Standards for Hazardous Air

Pollutants contained in Articles 9 and 11 of this Chapter;.

b. The requirements of such other state or county rules or regulations approved by the Administrator, including the

requirements of state and county operating and new source review permit and registration programs that have

been approved by the Administrator;. Notwithstanding this subsection, the condition of any permit or registration

designated as being enforceable only by the state is not federally enforceable.

c. The requirements of any applicable implementation plan;.

d. Emissions limitations, controls, and other requirements, and any associated monitoring, recordkeeping, and

reporting requirements, other than those designated as enforceable only by the state, which are entered into voluntarily by a source that are included in a permit pursuant to R18-2-306.01 or R18-2-306.02.

54. “Federally listed hazardous air pollutant” means a pollutant listed pursuant to R18-2-1701(9).

45.55. “Final permit” means the version of a permit issued by the Department after completion of all review required by

this Chapter.

46.56. “Fixed capital cost” means the capital needed to provide all the depreciable components.

47.57. “Fuel” means any material which is burned for the purpose of producing energy. 

48.58. “Fuel burning equipment” means any machine, equipment, incinerator, device or other article, except stationary

rotating machinery, in which combustion takes place.

49.59. “Fugitive emissions” means those emissions which could not reasonably pass through a stack, chimney, vent, or

other functionally equivalent opening

50.60. “Fume” means solid particulate matter resulting from the condensation and subsequent solidification of vapors of

melted solid materials. 

51.61. “Fume incinerator” means a device similar to an afterburner installed for the purpose of incinerating fumes, gases

and other finely divided combustible particulate matter not previously burned.

52.62. “Good engineering practice (GEP) stack height” means a stack height meeting the requirements described in R18-

2-332.

63. “Hazardous air pollutant” means any federally listed hazardous air pollutant.

53.64. “Heat input” means the quantity of heat in terms of Btu’s Btus generated by fuels fed into the fuel burning equipment under conditions of complete combustion.

54.65. “Incinerator” means any equipment, machine, device, contrivance or other article, and all appurtenances thereof,

used for the combustion of refuse, salvage materials or any other combustible material except fossil fuels, for the purpose of reducing the volume of material.

55.66. “Indian governing body” means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of self-government.

56.67. “Indian reservation” means any federally recognized reservation established by Treaty, Agreement, Executive

Order, or Act of Congress.

57.68. “Insignificant activity” means any of the following activities an activity in an emissions unit that is not otherwise

subject to any applicable requirement and which belongs to one of the following categories:

a. Landscaping, building maintenance, or janitorial activities.

a. Liquid Storage and Piping

i. Petroleum product storage tanks containing the following substances, provided the applicant lists and identifies the contents of each tank with a volume of 350 gallons or more and provides threshold values for

throughput or capacity or both for each such tank: diesel fuels and fuel oil in storage tanks with capacity of

40,000 gallons or less, lubricating oil, transformer oil, and used oil.

b.ii. Gasoline storage tanks with capacity of 10,000 gallons or less.

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c. Diesel and fuel oil storage tanks with capacity of 40,000 gallons or less.

iii. Storage and piping of natural gas, butane, propane, or liquified petroleum gas, provided the applicant lists

and identifies the contents of each stationary storage vessel with a volume of 350 gallons or more and provides threshold values for throughput or capacity or both for each such vessel.

iv. Piping of fuel oils, used oil and transformer oil, provided the applicant includes a system description.

v. Storage and handling of drums or other transportable containers where the containers are sealed during storage, and covered during loading and unloading, including containers of waste and used oil regulated under

the federal Resource Conservation and Recovery Act, 42 U.S.C. 6901-6992k. Permit applicants must provide a description of material in the containers and the approximate amount stored.

vi. Storage tanks of any size containing exclusively soaps, detergents, waxes, greases, aqueous salt solutions,

aqueous solutions of acids that are not regulated air pollutants, or aqueous caustic solutions, provided the

permit applicant specifies the contents of each storage tank with a volume of 350 gallons or more.

vii. Electrical transformer oil pumping, cleaning, filtering, drying and the re-installation of oil back into transformers.

b. Internal combustion engine-driven compressors, internal combustion engine-driven electrical generator sets, and

internal combustion engine-driven water pumps used for less than 500 hours per calendar year for emergency

replacement or standby service, provided the permittee keeps records documenting the hours of operation of this

equipment.

c. Low Emitting Processes

d.i. Batch mixers with rated capacity of 5 cubic feet or less.

e.ii. Wet sand and gravel production facilities that obtain material from subterranean and subaqueous beds,

whose production rate is 200 tons/hour or less, and whose permanent in-plant roads are paved and cleaned to

control dust. This does not include activities in emissions units which are used to crush or grind any nonmetallic minerals.

f. Hand-held or manually operated equipment used for buffing, polishing, carving, cutting, drilling, machining,

routing, sanding, sawing, surface grinding, or turning of ceramic art work, precision parts, leather, metals, plastics, fiberboard, masonry, carbon, glass, or wood.

g.iii.Powder coating operations.

h. Internal combustion (IC) engine-driven compressors, IC engine-driven electrical generator sets, and IC enginedriven water pumps used only for emergency replacement or standby service.

i. Lab equipment used exclusively for chemical and physical analyses.

j. Any other activity which the Director determines is not necessary, because of its emissions due to size or production rate, to be included in an application in order to determine all applicable requirements and to calculate any

fee under this Chapter.

iv. Equipment using water, water and soap or detergent, or a suspension of abrasives in water for purposes of

cleaning or finishing.

v. Blast-cleaning equipment using a suspension of abrasive in water and any exhaust system or collector serving them exclusively.

vi. Plastic pipe welding.

 d. Site Maintenance

i. Housekeeping activities and associated products used for cleaning purposes, including collecting spilled and

accumulated materials at the source, including operation of fixed vacuum cleaning systems specifically for

such purposes.

ii. Sanding of streets and roads to abate traffic hazards caused by ice and snow.

iii. Street and parking lot striping.

iv. Architectural painting and associated surface preparation for maintenance purposes at industrial or commercial facilities.

e. Sampling and Testing

i. Noncommercial (in-house) experimental, analytical laboratory equipment which is bench scale in nature,

including quality control/quality assurance laboratories supporting a stationary source and research and

development laboratories.

ii. Individual sampling points, analyzers, and process instrumentation, whose operation may result in emissions

but that are not regulated as emission units.

f. Ancillary Non-Industrial Activities

i. General office activities, such as paper shredding, copying, photographic activities, and blueprinting, but not

to include incineration.

ii. Use of consumer products, including hazardous substances as that term is defined in the Federal Hazardous

Substances Act (15 U.S.C. 1261 et seq.) where the product is used at a source in the same manner as normal

consumer use.

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iii. Activities directly used in the diagnosis and treatment of disease, injury or other medical condition.

g. Miscellaneous Activities

i. Installation and operation of potable, process and waste water observation wells, including drilling, pumping, filtering apparatus.

ii. Transformer vents.

58.69. “Kraft pulp mill” means any stationary source which produces pulp from wood by cooking or digesting wood chips

in a water solution of sodium hydroxide and sodium sulfide at high temperature and pressure. Regeneration of the

cooking chemicals through a recovery process is also considered part of the kraft pulp mill.

59.70. “Lead” means elemental lead or alloys in which the predominant component is lead.

60.71. “Lime hydrator” means a unit used to produce hydrated lime product.

61.72. “Lime plant” includes any plant which produces a lime product from limestone by calcination. Hydration of the

lime product is also considered to be part of the source.

62.73. “Lime product” means any product produced by the calcination of limestone.

63.74. “Major modification” is defined as follows:

a. A major modification means is any physical change in or change in the method of operation of a major source

that would result in both a significant emissions increase of any regulated NSR pollutant and a significant net

emissions increase of any regulated air pollutant that pollutant from the stationary source.

b. Any emissions increase or net emissions increase that is significant for nitrogen oxides or volatile organic compounds is significant for ozone.

b. Any net emissions increase that is significant for oxides of nitrogen is significant for ozone for ozone nonattainment areas classified as marginal, moderate, serious, or severe.

c. For the purposes of this definition, none of the following are not is a physical change or change in the method of

operation:

i. Routine maintenance, repair, and replacement;

ii. Use of an alternative fuel or raw material by reason of an order under Sections sections 2(a) and (b) of the

Energy Supply and Environmental Coordination Act of 1974, 15 U.S.C. 792, or by reason of a natural gas

curtailment plan under the Federal Power Act, 16 U.S.C. 792 - 825r;

iii. Use of an alternative fuel by reason of an order or rule under Section section 125 of the Act;

iv. Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal

solid waste;

v. Use of an alternative fuel or raw material by a stationary source that either:

(1) The source was capable of accommodating before December 12, 1976, unless the change would be prohibited under any federally enforceable permit condition established after December 12, 1976, under 40

CFR 52.21, or under Articles 3 or 4 of this Chapter; or

(2) The source is approved to use under any permit issued under 40 CFR 52.21, or under Articles 3 or 4 of

this Chapter.;

vi. An increase in the hours of operation or in the production rate, unless the change would be prohibited under

any federally enforceable permit condition established after December 12, 1976, under 40 CFR 52.21, or

under Articles 3 or 4 of this Chapter.;

vii. Any change in ownership at a stationary source;

viii. [Reserved.] The addition, replacement, or use of a pollution control project at an existing electric utility

steam generating unit, unless the Director determines that the addition, replacement, or use renders the unit

less environmentally beneficial, or except:

(1) When the Director has reason to believe that the pollution control project would result in a significant

net increase in representative actual annual emissions of any criteria pollutant over levels used for that

source in the most recent Title I air quality impact analysis in the area, if any, and

(2) The Director determines that the increase will cause or contribute to a violation of any national ambient

air quality standard or PSD increment, or visibility limitation;

ix. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration

project, if the project complies with:

(1) The SIP, and

(2) Other requirements necessary to attain and maintain the national ambient air quality standards during

the project and after it is terminated;

x. For electric utility steam generating units located in attainment and unclassifiable areas only, the installation

or operation of a permanent clean coal technology demonstration project that constitutes repowering, if the

project does not result in an increase in the potential to emit any regulated pollutant emitted by the unit. This

exemption applies on a pollutant-by-pollutant basis; and

xi. For electric utility steam generating units located in attainment and unclassifiable areas only, the reactivation

of a very clean coal-fired electric utility steam generating unit. 

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d. This definition shall not apply with respect to a particular regulated NSR pollutant when the major source is

complying with the requirements of R18-2-412 for a PAL for that regulated NSR pollutant. Instead, the definition of PAL major modification in R18-2-401(17) shall apply.

64.75. “Major source” means:

a. A major source as defined in R18-2-401.

b. A major source under Section section 112 of the Act:

i. For pollutants other than radionuclides, any stationary source that emits or has the potential to emit, in the

aggregate, including fugitive emission 10 tons per year (tpy) or more of any hazardous air pollutant which

has been listed pursuant to Section section 112(b) of the Act, 25 tpy or more of any combination of such hazardous air pollutants, or such lesser quantity as described in Article 11 of this Chapter. Notwithstanding the

preceding sentence, emissions from any oil or gas exploration or production well (with its associated equipment) and emissions from any pipeline compressor or pump station shall not be aggregated with emissions

from other similar units, whether or not such units are in a contiguous area or under common control, to

determine whether such units or stations are major sources; or

ii. For radionuclides, “major source” shall have the meaning specified by the Administrator by rule.

c. A major stationary source, as defined in Section section 302 of the Act, that directly emits or has the potential to

emit, 100 tpy or more of any air pollutant including any major source of fugitive emissions of any such pollutant.

The fugitive emissions of a stationary source shall not be considered in determining whether it is a major stationary source for the purposes of Section section 302(j) of the Act, unless the source belongs to a section 302(j) category. one of the following categories of stationary source:

i. Coal cleaning plants (with thermal dryers).

ii. Kraft pulp mills.

iii. Portland cement plants.

iv. Primary zinc smelters.

v. Iron and steel mills.

vi. Primary aluminum ore reduction plants.

vii. Primary copper smelters.

viii. Municipal incinerators capable of charging more than 50 tons of refuse per day.

ix. Hydrofluoric, sulfuric, or nitric acid plants.

x. Petroleum refineries.

xi. Lime plants.

xii. Phosphate rock processing plants.

xiii. Coke oven batteries.

xiv. Sulfur recovery plants.

xv. Carbon black plants (furnace process).

xvi. Primary lead smelters.

xvii.Fuel conversion plants.

xviii.Sintering plants.

xix. Secondary metal production plants.

xx. Chemical process plants.

xxi. Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour

heat input.

xxii.Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels.

xxiii.Taconite ore processing plants.

xxiv.Glass fiber processing plants.

xxv.Charcoal production plants.

xxvi.Fossil-fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input.

xxvii.Any other stationary source category, which as of August 7, 1980, is being regulated under Section 111 or

112 of the Act.

65.76. “Malfunction” means any sudden and unavoidable failure of air pollution control equipment, process equipment or

a process to operate in a normal and usual manner, but does not include failures that are caused by poor maintenance,

careless operation or any other upset condition or equipment breakdown which could have been prevented by the

exercise of reasonable care.

66.77. “Minor source” means a source of air pollution which is not a major source for the purposes of Article 4 of this

Chapter and over which the Director, acting pursuant to A.R.S. § 49-402(B), has asserted jurisdiction.

67.78. “Minor source baseline area” means the air quality control region in which the source is located.

79. “Mobile source” means any combustion engine, device, machine or equipment that operates during transport and

that emits or generates air contaminants whether in motion or at rest. A.R.S. § 49-401.01(23).

80. “Modification” or “modify” means a physical change in or change in the method of operation of a source that

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increases the emissions of any regulated air pollutant emitted by such source by more than any relevant de minimis

amount or that results in the emission of any regulated air pollutant not previously emitted by more than such de minimis amount. An increase in emissions at a minor source shall be determined by comparing the source’s potential to

emit before and after the modification. The following exemptions apply:

a. A physical or operational change does not include routine maintenance, repair or replacement.

b. An increase in the hours of operation or if the production rate is not considered an operational change unless

such increase is prohibited under any permit condition that is legally and practically enforceable by the department.

c. A change in ownership at a source is not considered a modification. A.R.S. § 49-401.01(24).

68.81. “Monitoring device” means the total equipment, required under the applicable provisions of this Chapter, used to

measure and record, if applicable, process parameters.

69.82. “Motor vehicle” means any self-propelled vehicle designed for transporting persons or property on public highways.

70.83. “Multiple chamber incinerator” means three or more refractory-lined combustion chambers in series, physically

separated by refractory walls and interconnected by gas passage ports or ducts.

71.84. “Natural conditions” includes naturally occurring phenomena that reduce visibility as measured in terms of light

extinction, visual range, contrast, or coloration.

85. “
ational ambient air quality standard” means the ambient air pollutant concentration limits established by the

Administrator pursuant to section 109 of the Act. A.R.S. § 49-401.01(25).

72.86. “Necessary preconstruction approvals or permits” means those permits or approvals required under the Act and

those air quality control laws and rules which are part of the SIP.

73.87. “Net emissions increase” means: 

a. The amount by which the sum of subsections (69)(a)(i) (87)(a)(i) and (ii) exceeds zero:

i. Any The increase in actual emissions of a regulated NSR pollutant from a particular physical change or

change in the method of operation at a stationary source as calculated pursuant to R18-2-402(D); and

ii. Any other increases and decreases in actual emissions of the regulated NSR pollutant at the source that are

contemporaneous with the particular change and are otherwise creditable.

iii. For purposes of calculating increases and decreases in actual emissions under subsection (87)(a)(ii), baseline

actual emissions shall be determined as provided in the definition of baseline actual emissions in R18-2-

401(2), except that subsections R18-2-401(a)(iii) and (b)(iv) shall not apply.

b. An increase or decrease in actual emissions is contemporaneous with the increase from the particular change

only if it occurs between:

i. The date five years before construction on the particular change commences;, and

ii. The date that the increase from the particular change occurs.

c. An increase or decrease in actual emissions is creditable only if the Director has not relied on it in issuing a permit, which is in effect when the increase in actual emissions from the particular change occurs. In addition, in

nonattainment areas, a decrease in actual emissions shall be considered in determining net emissions increase

due to modifications only if the state has not relied on it in demonstrating attainment or reasonable further

progress.

d. An increase or decrease in actual emissions of sulfur dioxide, nitrogen oxides, or PM10 which occurs before the

applicable baseline date, as described in R18-2-218, is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available.

e. An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the

old level.

f. A decrease in actual emissions is creditable only to the extent that it satisfies all of the following conditions:

i. The old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the

new level of actual emissions;.

ii. It is federally enforceable as a practical matter at and after the time that actual construction on the particular

change begins;.

iii. It has approximately the same qualitative significance for public health and welfare as that attributed to the

increase from the particular change;. and

iv. The emissions unit was actually operated and emitted the specific pollutant.

v. For a source located in an area designated as nonattainment for the regulated NSR pollutant, the Director has

not relied on it in issuing any permit under Article 4 or R18-2-334, and the state has not relied on it in demonstrating attainment or reasonable further progress.

g. An increase that results from a physical change at a source occurs when the emissions unit on which construction

occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires

shakedown emissions unit that replaces an existing emissions unit and that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.

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74.88. “New source” means any stationary source of air pollution which is subject to an applicable new source performance standard under Article 9 of this Chapter.

75.89. “Nitric acid plant” means any facility producing nitric acid 30% to 70% in strength by either the pressure or atmospheric pressure process.

76.90. “Nitrogen oxides” means all oxides of nitrogen except nitrous oxide, as measured by test methods set forth in the

Appendices to 40 CFR 60.

77.91. “Nonattainment area” means an area so designated by the Administrator acting pursuant to Section section 107 of

the Act as exceeding national primary or secondary ambient air standards for a particular pollutant or pollutants.

78.92. “Nonpoint source” means a source of air contaminants which lacks an identifiable plume or emission point.

79.93. “Opacity” means the degree to which emissions reduce the transmission of light and obscure the view of an object

in the background.

80.94. “Operation” means any physical or chemical action resulting in the change in location, form, physical properties, or

chemical character of a material.

81.95. “Owner or operator” means any person who owns, leases, operates, controls, or supervises an affected facility or a

stationary source of which an affected facility is a part.

82.96. “Particulate matter” means any airborne finely divided solid or liquid material with an aerodynamic diameter

smaller than 100 micrometers.

83.97.“Particulate matter emissions” means all finely divided solid or liquid materials other than uncombined water, emitted to the ambient air as measured by applicable test methods and procedures described in R18-2-311.

98. “Permitting authority” means the department or a county department, agency or air pollution control district that is

charged with enforcing a permit program adopted pursuant to A.R.S. § 49-480(A). A.R.S. § 49-401.01(28).

99. “Permitting exemption thresholds” for a regulated minor NSR pollutant means the following:

100.“Person” means any public or private corporation, company, partnership, firm, association or society of persons, the

federal government and any of its departments or agencies, the state and any of its agencies, departments or political

subdivisions, as well as a natural person.

101.“Planning agency” means an organization designated by the governor pursuant to 42 U.S.C. 7504. A.R.S. § 49-

401.01(29).

84.102. “Predictive Emissions Monitoring System” or “PEMS” means the total equipment, required under the emission

monitoring provisions in this Chapter, to monitor process and control device operational parameters and other information, and calculate and record the mass emissions rate on a continuous basis.

84. Pollution control project” means any activity or project undertaken at an existing electric utility steam generating unit

to reduce emissions from the unit. The activities or projects are limited to:

a. The installation of conventional or innovative pollution control technology, including advanced flue gas desulfurization, sorbent injection for sulfur dioxide and nitrogen oxides controls, and electrostatic precipitators;

b. An activity or project to accommodate switching to a fuel less polluting than the fuel used before the activity or

project, including natural gas or coal reburning, or the co-firing of natural gas and other fuels for the purpose of

controlling emissions;

c. A permanent clean coal technology demonstration project conducted under Title II, section 101(d) of the Further

Continuing Appropriations Act of 1985 (42 U.S.C. 5903(d), or subsequent appropriations, up to a total amount of

$2,500,000,000 for commercial demonstration of clean coal technology, or similar projects funded through

appropriations for the Environmental Protection Agency, or

d. A permanent clean coal technology demonstration project that constitutes a repowering project.

85.103. “PM2.5” means particulate matter with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers

as measured by a reference method based on 40 CFR 50 Appendix L, or by an equivalent method designated according to 40 CFR 53.

86.104. “PM10” means particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers as

Regulated Air Pollutant Emission Rate 

in tons per year (TPY)

PM2.5 (primary emissions only; levels for 

precursors are set below) 5

PM10 7.5

SO220

NOx 20

VOC 20

CO 50

Pb 0.3

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measured by a reference method contained within 40 CFR 50 Appendix J or by an equivalent method designated in

accordance with 40 CFR 53.

87.105. “PM10 emissions” means finely divided solid or liquid material, with an aerodynamic diameter less than or equal

to a nominal 10 micrometers emitted to the ambient air as measured by applicable test methods and procedures

described in R18-2-311.

88.106. “Plume” means visible effluent.

89.107. “Pollutant” means an air contaminant the emission or ambient concentration of which is regulated pursuant to this

Chapter.

90.108. “Portable source” means any building, structure, facility, or installation subject to regulation pursuant to A.R.S. §

49-426 which emits or may emit any air pollutant and is capable of being operated at more than one location.

91.109. “Potential to emit” or “potential emission rate” means the maximum capacity of a stationary source to emit a pollutant, excluding secondary emissions, under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on

hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its

design if the limitation or the effect it would have on emissions is federally legally and practically enforceable by the

Department or a county under A.R.S. Title 49, Chapter 3; any rule, ordinance, order or permit adopted or issued under

A.R.S. Title 49, Chapter 3 or the state implementation plan. 

92.110. “Primary ambient air quality standards” means the ambient air quality standards which define levels of air quality

necessary, with an adequate margin of safety, to protect the public health, as specified in Article 2 of this Chapter.

93.111. “Process” means one or more operations, including equipment and technology, used in the production of goods or

services or the control of by-products or waste.

112.“Project” means a physical change in, or change in the method of operation of, an existing major source.

94.113. “Proposed permit” means the version of a permit for which the Director offers public participation under R18-2-

330 or affected state review under R18-2-307(D).

95.114. “Proposed final permit” means the version of a Class I permit or Class I permit revision that the Department proposes to issue and forwards to the Administrator for review in compliance with R18-2-307(A).

96.115. “Reactivation of a very clean coal-fired electric utility steam generating unit” means any physical change or

change in the method of operation associated with commencing commercial operations by a coal-fired utility unit

after a period of discontinued operation if the unit:

a. Has not been in operation for the two-year period before enactment of the Clean Air Act Amendments of 1990,

and the emissions from the unit continue to be carried in the Director’s emissions inventory at the time of enactment;

b. Was equipped before shutdown with a continuous system of emissions control that achieves a removal efficiency

for sulfur dioxide of no less than 85% and a removal efficiency for particulates of no less than 98%;

c. Is equipped with low-NOx

 burners before commencement of operations following reactivation; and

d. Is otherwise in compliance with the Act.

116.“Reasonable further progress” means the schedule of emission reductions defined within a nonattainment area plan as

being necessary to come into compliance with a national ambient air quality standard by the primary standard attainment date.

117.“Reasonably available control technology” (RACT) means devices, systems, process modifications, work practices

or other apparatus or techniques that are determined by the Director to be reasonably available taking into account:

a. The necessity of imposing the controls in order to attain and maintain a national ambient air quality standard;

b. The social, environmental, energy and economic impact of the controls;

c. Control technology in use by similar sources; and

d. The capital and operating costs and technical feasibility of the controls.

97.118. “Reclaiming machinery” means any machine, equipment device or other article used for picking up stored granular material and either depositing this material on a conveyor or reintroducing this material into the process.

98.119. “Reference method” means the methods of sampling and analyzing for an air pollutant as described in the Arizona

Testing Manual; 40 CFR 50, Appendices A through K; 40 CFR 51, Appendix M; 40 CFR 52, Appendices D and E;

40 CFR 60, Appendices A through F; and 40 CFR 61, Appendices B and C, as incorporated by reference in 18

A.A.C. 2, Appendix 2.

99.120. “Regulated air pollutant” means any of the following:

a. Any conventional air pollutant as defined in A.R.S. § 49-401.01.

b. Nitrogen oxides and volatile organic compounds.

c. Any air contaminant that is subject to a standard contained in Article 9 of this Chapter.

d. Any hazardous air pollutant as defined in Article 17 of this Chapter.

e. Any Class I or II substance listed in Section section 602 of the Act.

121.“Regulated minor NSR pollutant” means any pollutant for which a national ambient air quality standard has been promulgated and the following precursors for such pollutants:

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a. VOC and nitrogen oxides as precursors to ozone.

b. Nitrogen oxides and sulfur dioxide as precursors to PM2.5.

122.“Regulated NSR pollutant” means any of the following:

a. Any pollutant for which a national ambient air quality standard has been promulgated and any pollutant identified under this subsection as a constituent or precursor to such pollutant. Precursors for purposes of NSR are the

following:

i. Volatile organic compounds and nitrogen oxides are precursors to ozone in all areas.

ii. Sulfur dioxide is a precursor to PM2.5 in all areas.

iii. Nitrogen oxides are precursors to PM2.5 in all areas.

b. Any pollutant that is subject to any standard promulgated under Article 9 of this Chapter.

c. Any Class I or II substance subject to a standard promulgated under or established by Title VI of the Act as of

July 1, 2011.

d. [Reserved.]

e. Notwithstanding subsections (122)(a) through (d), the term regulated NSR pollutant shall not include any or all

hazardous air pollutants listed under R18-2-1101, unless the listed hazardous air pollutant is also regulated as a

constituent or precursor of a general pollutant listed under section 108 of the Act as of July 1, 2010.

f. Particulate matter emissions, PM2.5 emissions, and PM10 emissions shall include gaseous emissions from a

source or activity which condense to form particulate matter at ambient temperatures. On and after January 1,

2011, condensable particulate matter shall be accounted for in applicability determinations and in establishing

emissions limitations for particulate matter, PM2.5 and PM10 in permits issued under Article 4.

100.123. “Repowering” means:

a. Replacing an existing coal-fired boiler with one of the following clean coal technologies:

i. Atmospheric or pressurized fluidized bed combustion;

ii. Integrated gasification combined cycle;

iii. Magnetohydrodynamics;

iv. Direct and indirect coal-fired turbines;

v. Integrated gasification fuel cells; or

vi. As determined by the Administrator, in consultation with the United States Secretary of Energy, a derivative

of one or more of the above technologies; and

vii. Any other technology capable of controlling multiple combustion emissions simultaneously with improved

boiler or generation efficiency and with significantly greater waste reduction relative to the performance of

technology in widespread commercial use as of November 15, 1990.

b. Repowering also includes any oil, gas, or oil and gas-fired unit that has been awarded clean coal technology

demonstration funding as of January 1, 1991, by the United States Department of Energy.

c. The Director shall give expedited consideration to permit applications for any source that satisfies the requirements of this subsection (and) is granted an extension under section 409 of the Act.

101.“Representative actual annual emissions” means the average rate, in tons per year, at which a source is projected to

emit a pollutant for the 2-year period after a physical change or change in the method of operation of a unit, (or a different consecutive 2-year period within 10 years after that change, if the Director determines that the different period

is more representative of source operations), considering the effect the change will have on increasing or decreasing

the hourly emissions rate and on projected capacity utilization. In projecting future emissions the Director shall:

a. Consider all relevant information, including historical operational data, the company’s representations, filings

with Arizona or federal regulatory authorities, and compliance plans under Title IV of the Act; and

b. Exclude, in calculating any increase in emissions that results from the particular physical change or change in the

method of operation at an electric utility steam generating unit, that portion of the unit’s emissions following the

change that could have been accommodated during the representative baseline period and is attributable to an

increase in projected capacity utilization at the unit unrelated to the particular change, including any increased

utilization due to the rate of electricity demand growth for the utility system as a whole.

102.124. “Run” means the net period of time during which an emission sample is collected, which may be, unless otherwise specified, either intermittent or continuous within the limits of good engineering practice.

125.“SCREEN model” means the AERSCREEN air dispersion model published by the Administrator in April 2011 and

available on the Support Center for Regulatory Atmospheric Modeling web site: http://www.epa.gov/ttn/scram.

103.126. “Secondary ambient air quality standards” means the ambient air quality standards which define levels of air

quality necessary to protect the public welfare from any known or anticipated adverse effects of a pollutant, as specified in Article 2 of this Chapter.

104.127. “Secondary emissions” means emissions which are specific, well defined, quantifiable, occur as a result of the

construction or operation of a major source or major modification, but do not come from the major source or major

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wise be constructed or increase its emissions as a result of the construction or operation of the major source or major

modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as

emissions from the tailpipe of a motor vehicle, from a train, or from a vessel.

128.“Section 302(j) category” means:

a. Any of the classes of sources listed in the definition of categorical source in subsection (23); or

b. Any category of affected facility which, as of August 7, 1980, is being regulated under section 111 or 112 of the

Act.

105.129. “Shutdown” means the cessation of operation of any air pollution control equipment or process equipment for

any purpose, except routine phasing out of process equipment.

106.130. “Significant” means, in reference to a significant emissions increase, a net emissions increase or a stationary

source’s potential to emit a regulated NSR pollutant:

a. In reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a A

rate of emissions that would equal or exceed any of the following rates:

b. In ozone nonattainment areas classified as serious or severe, significant emissions of nitrogen oxides and VOC

shall be determined under R18-2-405.

c. In a carbon monoxide nonattainment area classified as serious, a rate of emissions that would equal or exceed 50

tons per year, if the Administrator has determined that stationary sources contribute significantly to carbon monoxide levels in that area.

c.d. For a regulated air NSR pollutant that is not listed in subsection (130)(a), is not a Class I or II substance listed in

Section 602 of the Act, and is not a hazardous air pollutant according to Article 17 of this Chapter, any emission

rate.

d.e. Notwithstanding the emission amount rates listed in subsection (130)(a), any emissions rate or any net emissions

increase associated with a major source or major modification, which would be constructed within 10 kilometers

of a Class I area and have an impact on the ambient air quality of such area equal to or greater than 1 μg/m3 (24-

hour average).

131.“Significant emissions increase” means, for a regulated NSR pollutant, an increase in emissions that is significant as

defined in this Section for that pollutant.

Pollutant Emissions Rate

Carbon monoxide 100 tons per year (tpy)

Nitrogen oxides 40 tpy

Sulfur dioxide 40 tpy

Particulate matter 25 tpy

PM10 15 tpy

PM2.5 10 tpy of direct PM2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions.

VOC 40 tpy 

Lead 0.6 tpy

Fluorides 3 tpy

Sulfuric acid mist 7 tpy

Hydrogen sulfide (H2S) 10 tpy

Total reduced sulfur

(including H2S)

10 tpy

Reduced sulfur compounds (including H2S) 10 tpy

Municipal waste combustor organics (measured as total

tetra-through octa-chlorinated dibenzo-p-dioxins and

dibenzofurans)

3.5 x 10-6 tpy

Municipal waste combustor

metals (measured as particulate matter)

15 tpy

Municipal waste combustor acid gases (measured as

sulfur

dioxide and hydrogen chloride)

40 tpy

Municipal solid waste landfill emissions (measured as

nonmethane organic compounds)

50 tpy

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107.132. “Smoke” means particulate matter resulting from incomplete combustion.

133.“Source” means any building, structure, facility or installation that may cause or contribute to air pollution or the

use of which may eliminate, reduce or control the emission of air pollution. A.R.S. § 49-401.01(23).

108.134. “Stack” means any point in a source designed to emit solids, liquids, or gases into the air, including a pipe or

duct but not including flares.

109.135. “Stack in existence” means that the owner or operator had either:

a. Begun, or caused to begin, a continuous program of physical on-site onsite construction of the stack;

b. Entered into binding agreements or contractual obligations, which could not be cancelled or modified without

substantial loss to the owner or operator, to undertake a program of construction of the stack to be completed in a

reasonable time.

110.136. “Start-up” means the setting into operation of any air pollution control equipment or process equipment for any

purpose except routine phasing in of process equipment.

111.137. “State implementation plan” (SIP) or “SIP” means the plan adopted by the state of Arizona which provides for

implementation, maintenance, and enforcement of such primary and secondary ambient air quality standards as are

adopted by the Administrator, pursuant to the Act the accumulated record of enforceable air pollution control measures, programs and plans adopted by the Director and submitted to and approved by the Administrator pursuant to 42

U.S.C. 7410.

112.138. “Stationary rotating machinery” means any gas engine, diesel engine, gas turbine, or oil fired turbine operated

from a stationary mounting and used for the production of electric power or for the direct drive of other equipment.

113.139. “Stationary source” means any building, structure, facility or installation subject to regulation pursuant to A.R.S.

§ 49-426(A) which emits or may emit any air pollutant. “Building,” “structure,” “facility,” or “installation” means all

of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person or persons under common control. Pollutantemitting activities shall be considered as part of the same industrial grouping if they belong to the same “Major

Group” as described in the “Standard Industrial Classification Manual, 1987.”

114.140. “Sulfuric acid plant” means any facility producing sulfuric acid by the contact process by burning elemental sulfur, alkylation acid, hydrogen sulfide, or acid sludge, but does not include facilities where conversion to sulfuric acid

is utilized as a means of preventing emissions of sulfur dioxide or other sulfur compounds to the atmosphere.

115.141. “Temporary clean coal technology demonstration project” means a clean coal technology demonstration project

operated for five years or less, and that complies with the SIP applicable implementation plan and other requirements

necessary to attain and maintain the national ambient air quality standards during the project and after the project is

terminated.

116.142. “Temporary source” means a source which is portable, as defined in A.R.S. § 49-401.01(23) and which is not an

affected source.

117.143. “Total reduced sulfur” (TRS) means the sum of the sulfur compounds, primarily hydrogen sulfide, methyl mercaptan, dimethyl sulfide, and dimethyl disulfide, that are released during kraft pulping and other operations and measured by Method 16 in 40 CFR 60, Appendix A.

118.“Total suspended particulate” (TSP) means particulate matter as measured by the reference method described in 40

CFR 50, Appendix B, plus any particulate matter from fugitive emissions quantified by methods approved by the

Director.

119.144. “Trivial activities” means activities and emissions units, such as the following, that may be omitted from a Class

I or Class II permit or registration application. Certain of the following listed activities include qualifying statements

intended to exclude similar activities:

a. Combustion emissions from propulsion of mobile sources;

b. Air-conditioning units used for human comfort that do not have applicable requirements under title VI of the Act;

c. Ventilating units used for human comfort that do not exhaust air pollutants into the ambient air from any manufacturing, industrial or commercial process;

d. Non-commercial food preparation;

e. Janitorial services and consumer use of janitorial products;

f. Internal combustion engines used for landscaping purposes;

g. Laundry activities, except for dry-cleaning and steam boilers;

h. Bathroom and toilet vent emissions;

i. Emergency or backup electrical generators at residential locations;

j. Tobacco smoking rooms and areas;

k. Blacksmith forges;

l. Plant maintenance and upkeep activities, including grounds-keeping, general repairs, cleaning, painting, welding, plumbing, re-tarring roofs, installing insulation, and paving parking lots, if these activities are not conducted

as part of a manufacturing process, are not related to the source’s primary business activity, and do not otherwise

trigger a permit revision. Cleaning and painting activities qualify as trivial activities if they are not subject to

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VOC or hazardous air pollutant (HAP) control requirements;

m. Repair or maintenance shop activities not related to the source’s primary business activity, not including emissions from surface coating, de-greasing, or solvent metal cleaning activities, and not otherwise triggering a permit revision;

n. Portable electrical generators that can be moved by hand from one location to another. “Moved by hand” means

capable of being moved without the assistance of any motorized or non-motorized vehicle, conveyance, or

device;

o. Hand-held equipment for buffing, polishing, cutting, drilling, sawing, grinding, turning, or machining wood,

metal, or plastic;

p. Brazing, soldering, and welding equipment, and cutting torches related to manufacturing and construction activities that do not result in emission of HAP metals. Brazing, soldering, and welding equipment, and cutting torches

related to manufacturing and construction activities that emit HAP metals are insignificant activities based on

size or production level thresholds. Brazing, soldering, and welding equipment, and cutting torches directly

related to plant maintenance and upkeep and repair or maintenance shop activities that emit HAP metals are

treated as trivial and listed separately in this definition;

q. Air compressors and pneumatically operated equipment, including hand tools;

r. Batteries and battery charging stations, except at battery manufacturing plants;

s. Storage tanks, vessels, and containers holding or storing liquid substances that will not emit any VOC or HAP;

t. Storage tanks, reservoirs, and pumping and handling equipment of any size containing soaps, vegetable oil,

grease, animal fat, and nonvolatile aqueous salt solutions, if appropriate lids and covers are used;

u. Equipment used to mix and package soaps, vegetable oil, grease, animal fat, and nonvolatile aqueous salt solutions, if appropriate lids and covers are used;

v. Drop hammers or hydraulic presses for forging or metalworking;

w. Equipment used exclusively to slaughter animals, not including other equipment at slaughterhouses, such as rendering cookers, boilers, heating plants, incinerators, and electrical power generating equipment;

x. Vents from continuous emissions monitors and other analyzers;

y. Natural gas pressure regulator vents, excluding venting at oil and gas production facilities;

z. Hand-held applicator equipment for hot melt adhesives with no VOC in the adhesive formulation;

aa. Equipment used for surface coating, painting, dipping, or spraying operations, except those that will emit VOC

or HAP;

bb. CO(2) lasers used only on metals and other materials that do not emit HAP in the process;

cc. Electric or steam-heated drying ovens and autoclaves, but not the emissions from the articles or substances being

processed in the ovens or autoclaves or the boilers delivering the steam;

dd. Salt baths using nonvolatile salts that do not result in emissions of any regulated air pollutants;

ee. Laser trimmers using dust collection to prevent fugitive emissions;

ff. Bench-scale laboratory equipment used for physical or chemical analysis, but not laboratory fume hoods or

vents;

gg. Routine calibration and maintenance of laboratory equipment or other analytical instruments;

hh. Equipment used for quality control, quality assurance, or inspection purposes, including sampling equipment

used to withdraw materials for analysis;

ii. Hydraulic and hydrostatic testing equipment;

jj. Environmental chambers not using HAP gases;

kk. Shock chambers;

ll. Humidity chambers;

mm.Solar simulators;

nn. Fugitive emissions related to movement of passenger vehicles, if the emissions are not counted for applicability

purposes under R18-2-101(64)(c) and any required fugitive dust control plan or its equivalent is submitted with

the application;

oo. Process water filtration systems and demineralizers;

pp. Demineralized water tanks and demineralizer vents;

qq. Oxygen scavenging or de-aeration of water;

rr. Ozone generators;

ss. Fire suppression systems;

tt. Emergency road flares;

uu. Steam vents and safety relief valves;

ww. Steam leaks; and

xx. Steam cleaning operations and steam sterilizers.

a. Low-Emitting Combustion

i. Combustion emissions from propulsion of mobile sources;

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ii. Emergency or backup electrical generators at residential locations;

iii. Portable electrical generators that can be moved by hand from one location to another. “Moved by hand”

means capable of being moved without the assistance of any motorized or non-motorized vehicle, conveyance, or device;

b. Low- Or Non-Emitting Industrial Activities

i. Blacksmith forges;

ii. Hand-held or manually operated equipment used for buffing, polishing, carving, cutting, drilling, sawing,

grinding, turning, routing or machining of ceramic art work, precision parts, leather, metals, plastics, fiberboard, masonry, carbon, glass, or wood;

iii. Brazing, soldering, and welding equipment, and cutting torches related to manufacturing and construction

activities that do not result in emission of HAP metals. Brazing, soldering, and welding equipment, and cutting torches related to manufacturing and construction activities that emit HAP metals are insignificant

activities based on size or production level thresholds. Brazing, soldering, and welding equipment, and cutting torches directly related to plant maintenance and upkeep and repair or maintenance shop activities that

emit HAP metals are treated as trivial and listed separately in this definition;

iv. Drop hammers or hydraulic presses for forging or metalworking;

v. Air compressors and pneumatically operated equipment, including hand tools;

vi. Batteries and battery charging stations, except at battery manufacturing plants;

vii. Drop hammers or hydraulic presses for forging or metalworking;

viii. Equipment used exclusively to slaughter animals, not including other equipment at slaughterhouses, such as

rendering cookers, boilers, heating plants, incinerators, and electrical power generating equipment;

ix. Hand-held applicator equipment for hot melt adhesives with no VOC in the adhesive formulation;

x. Equipment used for surface coating, painting, dipping, or spraying operations, except those that will emit

VOC or HAP;

xi. CO2 lasers used only on metals and other materials that do not emit HAP in the process;

xii. Electric or steam-heated drying ovens and autoclaves, but not the emissions from the articles or substances

being processed in the ovens or autoclaves or the boilers delivering the steam;

xiii. Salt baths using nonvolatile salts that do not result in emissions of any regulated air pollutants;

xiv. Laser trimmers using dust collection to prevent fugitive emissions;

xv. Process water filtration systems and demineralizers;

xvi. Demineralized water tanks and demineralizer vents;

xvii.Oxygen scavenging or de-aeration of water;

xviii.Ozone generators;

xix. Steam vents and safety relief valves;

xx. Steam leaks; and

xxi. Steam cleaning operations and steam sterilizers;

xxii.Use of vacuum trucks and high pressure washer/cleaning equipment within the stationary source boundaries

for cleanup and in-source transfer of liquids and slurried solids to waste water treatment units or conveyances;

xxiii.Equipment using water, water and soap or detergent, or a suspension of abrasives in water for purposes of

cleaning or finishing.

xxiv.Electric motors.

c. Building and Site Maintenance Activities

i. Plant and building maintenance and upkeep activities, including grounds-keeping, general repairs, cleaning,

painting, welding, plumbing, re-tarring roofs, installing insulation, and paving parking lots, if these activities

are not conducted as part of a manufacturing process, are not related to the source’s primary business activity, and do not otherwise trigger a permit revision. Cleaning and painting activities qualify as trivial activities if they are not subject to VOC or hazardous air pollutant control requirements;

ii. Repair or maintenance shop activities not related to the source’s primary business activity, not including

emissions from surface coating, de-greasing, or solvent metal cleaning activities, and not otherwise triggering a permit revision;

iii. Janitorial services and consumer use of janitorial products;

iv. Landscaping activities;

v. Routine calibration and maintenance of laboratory equipment or other analytical instruments;

vi. Sanding of streets and roads to abate traffic hazards caused by ice and snow;

vii. Street and parking lot striping;

viii. Caulking operations which are not part of a production process.

d. Incidental, Non-Industrial Activities

i. Air-conditioning units used for human comfort that do not have applicable requirements under Title VI of

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the Act;

ii. Ventilating units used for human comfort that do not exhaust air pollutants into the ambient air from any

manufacturing, industrial or commercial process;

iii. Tobacco smoking rooms and areas;

iv. Non-commercial food preparation;

v. General office activities, such as paper shredding, copying, photographic activities, pencil sharpening and

blueprinting, but not including incineration;

vi. Laundry activities, except for dry-cleaning and steam boilers;

vii. Bathroom and toilet vent emissions;

viii. Fugitive emissions related to movement of passenger vehicles, if the emissions are not counted for applicability purposes under subsection (144)(c) of the definition of major source in this Section and any required

fugitive dust control plan or its equivalent is submitted with the application;

ix. Use of consumer products, including hazardous substances as that term is defined in the Federal Hazardous

Substances Act (15 U.S.C. 1261 et seq.) where the product is used at a source in the same manner as normal

consumer use;

x. Activities directly used in the diagnosis and treatment of disease, injury or other medical condition;

xi. Circuit breakers;

xii. Adhesive use which is not related to production.

e. Storage, Piping and Packaging

i. Storage tanks, vessels, and containers holding or storing liquid substances that will not emit any VOC or

HAP;

ii. Storage tanks, reservoirs, and pumping and handling equipment of any size containing soaps, vegetable oil,

grease, animal fat, and nonvolatile aqueous salt solutions, if appropriate lids and covers are used;

iii. Chemical storage associated with water and wastewater treatment where the water is treated for consumption and/or use within the permitted facility;

iv. Chemical storage associated with water and wastewater treatment where the water is treated for consumption and/or use within the permitted facility;

v. Storage cabinets for flammable products;

vi. Natural gas pressure regulator vents, excluding venting at oil and gas production facilities;

vii. Equipment used to mix and package soaps, vegetable oil, grease, animal fat, and nonvolatile aqueous salt

solutions, if appropriate lids and covers are used;

f. Sampling and Testing

i. Vents from continuous emissions monitors and other analyzers;

ii. Bench-scale laboratory equipment used for physical or chemical analysis, but not laboratory fume hoods or

vents;

iii. Equipment used for quality control, quality assurance, or inspection purposes, including sampling equipment used to withdraw materials for analysis;

iv. Hydraulic and hydrostatic testing equipment;

v. Environmental chambers not using HAP gases;

vi. Soil gas sampling;

vii. Individual sampling points, analyzers, and process instrumentation, whose operation may result in emissions

but that are not regulated as emission units;

g. Safety Activities

i. Fire suppression systems;

ii. Emergency road flares;

h. Miscellaneous Activities

i. Shock chambers;

ii. Humidity chambers;

iii. Solar simulators;

iv. Cathodic protection systems;

v. High voltage induced corona; and

vi. Filter draining.

120.145. “Unclassified area” means an area which the Administrator, because of a lack of adequate data, is unable to classify as an attainment or nonattainment area for a specific pollutant, and which, for purposes of this Chapter, is treated

as an attainment area.

121.146. “Uncombined water” means condensed water containing analytical trace amounts of other chemical elements or

compounds.

122.147. “Urban or suburban open area” means an unsubdivided tract of land surrounding a substantial urban development of a residential, industrial, or commercial nature and which, though near or within the limits of a city or town,

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may be uncultivated, used for agriculture, or lie fallow.

123.148. “Vacant lot” means a subdivided residential or commercial lot which contains no buildings or structures of a

temporary or permanent nature.

124.149. “Vapor” means the gaseous form of a substance normally occurring in a liquid or solid state.

125.150. “Visibility impairment” means any humanly perceptible change in visibility (light extinction, visual range, contrast, coloration) from that which would have existed under natural conditions.

126.151. “Visible emissions” means any emissions which are visually detectable without the aid of instruments and which

contain particulate matter.

127.152. “Volatile organic compounds” or “VOC (VOC)” means any compound of carbon, excluding carbon monoxide,

carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, that participates in atmospheric photochemical reactions. This includes any such organic compound other than the following:

a. Methane;

b. Ethane;

c. Methylene chloride (dichloromethane);

d. 1,1,1-trichloroethane (methyl chloroform);

e. 1,1,2-trichloro-1,2,2-trifluoroethane (CFC-113);

f. Trichlorofluoromethane (CFC-11);

g. Dichlorodifluoromethane (CFC-12);

h. Chlorodifluoromethane (HCFC-22);

i. Trifluoromethane (HFC-23);

j. 1,2-dichloro 1,1,2,2-tetrafluoroethane (CFC-114);

k. Chloropentafluoroethane (CFC-115);

l. 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123);

m. 1,1,1,2-tetrafluoroethane (HFC-134a);

n. 1,1-dichloro 1-fluoroethane (HCFC-141b);

o. 1-chloro 1,1-difluoroethane (HCFC-142b);

p. 2-chloro-1,1,1,2-tetrafluoroethane (HCFC-124);

q. Pentafluoroethane (HFC-125);

r. 1,1,2,2-tetrafluoroethane (HFC-134);

s. 1,1,1-trifluoroethane (HFC-143a);

t. 1,1-difluoroethane (HFC-152a);

u. Parachlorobenzotrifluoride (PCBTF);

v. Cyclic, branched, or linear completely methylated siloxanes;

w. Acetone;

x. Perchloroethylene (tetrachloroethylene);

y. 3,3-dichloro-1,1,1,2,2-pentafluoropropane (HCFC-225ca);

z. 1,3-dichloro-1,1,2,2,3-pentafluoropropane (HCFC-225cb);

aa. 1,1,1,2,3,4,4,5,5,5-decafluoropentane (HFC 43-10mee);

bb. Difluoromethane (HFC-32);

cc. Ethylfluoride (HFC-161);

dd. 1,1,1,3,3,3-hexafluoropropane (HFC-236fa);

ee. 1,1,2,2,3-pentafluoropropane (HFC-245ca);

ff. 1,1,2,3,3-pentafluoropropane (HFC-245ea);

gg. 1,1,1,2,3-pentafluoropropane (HFC-245eb);

hh. 1,1,1,3,3-pentafluoropropane (HFC-245fa);

ii. 1,1,1,2,3,3-hexafluoropropane (HFC-236ea);

jj. 1,1,1,3,3-pentafluorobutane (HFC-365mfc);

kk. Chlorofluoromethane (HCFC-31);

ll. 1 chloro-1-fluoroethane (HCFC-151a);

mm.1,2-dichloro-1,1,2-trifluoroethane (HCFC-123a);

nn. 1,1,1,2,2,3,3,4,4-nonafluoro-4-methoxy-butane (C4F9OCH3

);

oo. 2-(difluoromethoxymethyl)-1,1,1,2,3,3,3-heptafluoropropane ((CF3)2CFCF2OCH3);

pp. 1-ethoxy-1,1,2,2,3,3,4,4,4-nonafluorobutane (C4F9OC2H5);

qq. 2-(ethoxydifluoromethyl)-1,1,1,2,3,3,3-heptafluoropropane ((CF3

)2CFCF2OC2H5);

rr. Methyl acetate; and

ss. 1,1,1,2,2,3,3-heptafluoro-3-methoxypropane (n-C3F7OCH3, HFE—7000); 

tt. 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-dodecafluoro-2-(trifluoromethyl) hexane (HFE – 7500);

uu. 1,1,1,2,3,3,3-hentafluoropropane (HFC 227ea); and

vv. Methyl formate (HCOOCH3): and

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ww. (1) 1,1,1,2,2,3,4,5,5,5-decafluoro-3-methoxy-4-trifluoromethyl-pentane (HFE–7300);

xx. Propylene carbonate;

yy. Dimethyl carbonate; and

ww.zz. Perfluorocarbon compounds that fall into these classes:

i. Cyclic, branched, or linear, completely fluorinated alkanes.

ii. Cyclic, branched, or linear, completely fluornated fluorinated ethers with no unsaturations.

iii. Cycle, branched, or linear, completely fluorinated tertiary amines with no unsaturations; or

iv. Sulfur containing perfluorocarbons with no unsaturations and with sulfur bonds only to carbon and fluorine.

xx.aaa. The following compound is VOC for purposes of all recordkeeping, emissions reporting, photochemical dispersion modeling and inventory requirements which apply to VOC and shall be uniquely identified in emission

reports, but are is not VOC for purposes of VOC emissions limitations or VOC content requirements: t-butyl acetate.

128.153. “Wood waste burner” means an incinerator designed and used exclusively for the burning of wood wastes consisting of wood slabs, scraps, shavings, barks, sawdust or other wood material, including those that generate steam as

a by-product.

R18-2-102. Incorporated Materials

The following documents are incorporated by reference and are on file with the Office of the Secretary of State (1700 West

Washington Street, Suite 103, Phoenix, Arizona 85007) and the Department (1110 West Washington Street, Phoenix, Arizona

85007):

1. Sections 1 and 7 of the The Department’s “Arizona Testing Manual for Air Pollutant Emissions,” amended as of

March 1992 (and no future editions).

2. All ASTM test methods referenced in this Chapter as of the year specified in the reference (and no future amendments). They are available from the American Society for Testing and Materials, 1916 Race St., Philadelphia, PA

19103-1187.

3. The U.S. Government Printing Office’s “Standard Industrial Classification Manual, 1987” (and no future editions).

ARTICLE 2. AMBIET AIR QUALITY STADARDS; AREA DESIGATIOS; CLASSIFICATIOS

R18-2-201. Particulate matter Matter: PM10 and PM2.5

A. PM10 Standards

1. The level of the primary and secondary ambient air quality standards for PM10 are is:

a. 50 micrograms per cubic meter of PM10 -- annual arithmetic mean concentration.

b. 150 micrograms per cubic meter of PM10 – 24-hour average concentration.

2. The secondary ambient air quality standards for PM10 are:

a. 50 micrograms per cubic meter of PM10 -- annual arithmetic mean concentration.

b. 150 micrograms per cubic meter of PM10 -- 24-hour average concentration.

3.2. To determine attainment of the primary and secondary standards, a person shall measure PM10 in the ambient air by:

a. A reference method based on 40 CFR 50, Appendix J, and designated according to 40 CFR 53; or

b. An equivalent method designated according to 40 CFR 53.

4. The primary and secondary annual ambient air quality standards for PM10 are attained when the expected annual

arithmetic mean concentration, determined according to 40 CFR 50, Appendix K, is less than or equal to 50 micrograms per cubic meter.

5.3. The primary and secondary 24-hour ambient air quality standards for PM10 are attained when the expected number of

days per calendar year with a 24-hour average concentration above 150 micrograms per cubic meter, determined

according to 40 CFR 50, Appendix K, is less than or equal to 1 one.

B. PM2.5 Standards

1. The primary ambient air quality standards for PM2.5 are:

a. 15 micrograms per cubic meter of PM2.5 – annual arithmetic mean concentration.

b. 65 35 micrograms per cubic meter of PM2.5 – 24-hour average concentration.

2. The secondary ambient air quality standards for PM2.5 are:

a. 15 micrograms per cubic meter of PM2.5 – annual arithmetic mean concentration.

b. 65 35 micrograms per cubic meter of PM2.5 – 24-hour average concentration.

3. To determine attainment of the primary and secondary standards, a person shall measure PM2.5 in the ambient air by:

a. A reference method based on 40 CFR 50, Appendix L, and designated according to 40 CFR 53; or

b. An equivalent method designated according to 40 CFR 53.

4. The primary and secondary annual ambient air quality standards for PM2.5 are met when the annual arithmetic mean

concentration, determined according to 40 CFR 50, Appendix N, is less than or equal to 15 micrograms per cubic

meter.

5. The primary and secondary 24-hour ambient air quality standards for PM2.5 are met when the 98th percentile 24-hour

concentration, determined according to 40 CFR 50, Appendix N, is less than or equal to 65 35 micrograms per cubic

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meter.

R18-2-202. Sulfur oxides (sulfur dioxide) Oxides (Sulfur Dioxide)

A. The primary ambient air quality standards for sulfur oxides, measured as sulfur dioxide, are:

1. 0.03 parts per million (ppm) (80 g/m3) – annual arithmetic mean.

2. 0.14 parts per million (ppm) (365 g/m3

) – maximum 24-hour concentration not to be exceeded more than once per

calendar year.

3. 75 parts per billion (ppb) – maximum one-hour concentration. The one-hour primary standard is met at an ambient air

quality monitoring site when the three-year average of the annual 99th percentile of the daily maximum one-hour

average concentrations is less than or equal to 75 parts per billion, as determined according to 40 CFR 50, Appendix

T.

B. The secondary ambient air quality standard for sulfur oxides, measured as sulfur dioxide, is 0.5 parts per million (ppm)

(1300 g/m3) – maximum three-hour concentration not to be exceeded more than once per year.

C. The level of the standards shall be measured by a reference method based on 40 CFR 50, Appendix A or A-1, or by a Federal Equivalent Method designated according to 40 CFR 53.

D. The standards in subsections (A)(1) and (2) shall apply:

1. In an area designated nonattainment for a standard in subsection (A)(1) or (2) as of August 23, 2011, and areas not

meeting a state implementation plan call for a standard in subsection (A)(1) or (2), until the state submits pursuant to

section 191 of the Act, and the Administrator approves, a state implementation plan providing for attainment the standard in subsection (A)(3) in that area.

2. In areas other than those identified in subsection (D)(1), until the effective date of the designation of that area, pursuant to section 107 of the act, for the standard in subsection (A)(3).

R18-2-203. Ozone: 1-hour standard and 8-hour averaged standard One-hour Standard and Eight-hour Average

Standard

A. 1-hour One-hour standard. Until June 15, 2005: 

1. The 1-hour primary one-hour ambient air quality standard for ozone is 0.12 ppm (235 micrograms per cubic meter). 

2. The 1-hour one-hour secondary ambient air quality standard for ozone is 0.12 ppm (235 micrograms per cubic meter). 

3. The 1-hour one-hour standards are attained when the expected number of days per calendar year with maximum

hourly average concentrations above 0.12 ppm (235 micrograms per cubic meter) is less than or equal to 1, determined by 40 CFR 50, Appendix H.

B. 8-hour Eight-hour averaged standard.

1. The 8-hour averaged eight-hour average primary ambient air quality standard for ozone is 0.08 0.075 ppm. 

2. The 8-hour averaged eight-hour average secondary ambient air quality standard for ozone is 0.08 0.075 ppm. 

3. To determine attainment of the primary and secondary standards, a person shall measure ozone in the ambient air by:

a. A reference method based on 40 CFR 50, Appendix D, and designated according to 40 CFR 53; or

b. An equivalent method designated according to 40 CFR 53.

3.4. 8-hour averaged Eight-hour average primary and secondary ambient air quality standards for ozone are met at an

ambient air quality monitoring site when the three-year average of the annual fourth highest daily maximum 8-hour

eight-hour average ozone concentration is less than or equal to 0.08 0.075 ppm, determined according to 40 CFR 50,

Appendix I P.

R18-2-205. itrogen dioxide Oxides (itrogen Dioxide)

A. The primary ambient air quality standard standards for nitrogen dioxide is.053 parts per million (100 micrograms per

cubic meter) -- annual arithmetic mean oxides of nitrogen, measured in the ambient air as nitrogen dioxide, are:

1. 53 parts per billion – annual average concentration.

2. 100 parts per billion – one-hour average concentration.

B. The secondary ambient air quality standard for nitrogen dioxide is 0.053 (parts per million (100 micrograms per cubic

meter) -- annual arithmetic mean.

C. The levels of the standards shall be measured by a reference method based on 40 CFR 50, Appendix F or a federal equivalent method designated in accordance with 40 CFR 53.

D. The annual primary standard is met when the annual average concentration in a calendar year is less than or equal to 53

ppb, as determined in accordance with 40 CFR, Appendix S for the annual standard.

E. The one-hour primary standard is met when the three-year average of the annual 98th percentile of the daily maximum

one-hour average concentration is less than or equal to 100 parts per billion, as determined in accordance with 40 CFR 50,

Appendix S.

C.F. The secondary standards are standard is attained when the annual arithmetic mean concentration in a calendar year is less

than or equal to 0.053 ppm, rounded to three decimal places, with fractional parts equal to or greater than 0.0005 ppm

rounded up. To demonstrate attainment, an annual mean shall be based upon hourly data that is at last least 75% complete

or upon data derived from the manual methods, that is at least 75% complete for the scheduled sampling days in each calendar quarter.

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R18-2-206. Lead

A. The primary ambient air quality standard for lead and its compounds, measured as elemental lead, is 1.5 0.15 micrograms

per cubic meter – maximum arithmetic mean averaged over a calendar quarter three-month period.

B. The secondary ambient air quality standard for lead and its compounds, measured as elemental lead, is 1.5 0.15 micrograms per cubic meter – maximum arithmetic mean averaged over a calendar quarter three-month period.

C. The level of the standards shall be measured by a reference method based on 40 CFR 50, Appendix G and designated in

accordance with 40 CFR 53, or by an equivalent designated in accordance with part 53 of this chapter.

D. The national primary and secondary ambient air quality standards for lead are met when the maximum arithmetic threemonth mean concentration for a three-year period, as determined in accordance with 40 CFR 50, Appendix R, is less than

or equal to 0.15 micrograms per cubic meter.

E. The former primary and secondary ambient air quality standards for lead of 1.5 micrograms per cubic meter averaged over

a calendar quarter shall apply to an area until one year after the effective date of the designation of that area, pursuant to

section 107 of the Act, for the standards in subsections (A) and (B).

R18-2-210. Attainment, onattainment, and Unclassifiable Area Designations

40 CFR 81.303 as amended as of July 1, 2006 2011 (and no future amendments or editions) is incorporated by reference as an

applicable requirement and on file with the Department of Environmental Quality. 40 CFR 81.303 is available from the U.S.

Government Printing Office, Superintendent of Documents, Mail Stop SSOP, Washington, D.C. 20402-9328.

R18-2-218. Limitation of Pollutants in Classified Attainment Areas

A. Areas designated as Class I, II, or III shall be limited to the following increases in air pollutant concentrations occurring

over the baseline concentration; provided that for any period other than an annual period, the applicable maximum allowable increase may be exceeded once per year at any one location:

CLASS I

Maximum Allowable Increase

(Micrograms per cubic meter)

Particulate matter: PM2.5

 Annual arithmetic mean 1

 24-hr maximum 2

Particulate matter: PM10

 Annual arithmetic mean 4

 24-hour maximum 8

Sulfur dioxide:

 Annual arithmetic mean 2

 24-hour maximum 5

 3-hour maximum 25

Nitrogen dioxide:

 Annual arithmetic mean 2.5

CLASS II

Particulate matter: PM2.5

Annual arithmetic mean 4

24-hr maximum 9

Particulate matter: PM10

Annual arithmetic mean 17

24-hour maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24-hour maximum 91

3-hour maximum 512

Nitrogen dioxide:

Annual arithmetic mean 25

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B. The baseline concentration shall be that ambient concentration level which exists in the baseline area at the time of the

applicable minor source baseline data.

1. The major source baseline date is:

a. January 6, 1975, for sulfur dioxide and particulate matter PM10.; and

b. February 8, 1988, for nitrogen dioxide.

c. October 20, 2010, for PM2.5.

2. The minor source baseline date shall be the earliest date after August 7, 1977, for sulfur dioxide and particulate matter, and February 8, 1988, for nitrogen dioxide, that either:

a. A major source as defined in R18-2-401 or a major modification submits a complete permit application to the

Administrator under 40 CFR 52.21; or

b. A major source as defined in R18-2-401 or a major modification submits a complete permit application to the

Director under R18-2-304(E)(2) or R18-2-406. the trigger date on which a major source as defined in R18-2-401

or major modification subject to 40 CFR 52.21 or R18-2-406 submits a complete application under the relevant

regulations. The trigger date is:

a. August 7, 1977, for PM10 and sulfur dioxide.

b. February 8, 1988, for nitrogen dioxide.

c. October 20, 2011, for PM2.5.

3. A baseline concentration shall be determined for each pollutant for which there is a minor source baseline date and

shall include both:

a. The actual emissions representative of sources in existence on the minor source baseline date, except as provided

in subsection (B)(4); and

b. The allowable emissions of major sources as defined in R18-2-401 which commenced construction before the

major source baseline date but were not in operation by the applicable minor source baseline date.

4. The following shall not be included in the baseline concentration and shall affect the applicable maximum allowable

increase:

a. Actual emissions from any major source as defined in R18-2-401 on which construction commenced after the

major source baseline date; and

b. Actual emissions increases and decreases at any stationary source occurring after the minor source baseline date.

C. The baseline date shall be established for each pollutant for which maximum allowable increases or other equivalent measures have been established if both:

1. The area in which the proposed source or modification would construct is designated as attainment or unclassifiable

under section 107(d)(1)(A)(ii) or (iii) of the Act for the pollutant on the date of its complete application under either

subsection (B)(2)(a) or (b) 40 CFR 52.21 or R18-2-406; and

2. In the case of a major source as defined in R18-2-401, the pollutant would be emitted in significant amounts, or in the

case of a major modification, there would be a significant net emissions increase of the pollutant.

D. The baseline area shall be the AQCR that contains the area, designated as attainment or unclassifiable under section

107(d)(1)(A)(ii) or (iii) of the Act, in which the major source as defined in R18-2-401 or a major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greater than 1 ug/m3

(annual average) of for the pollutant for which the minor source baseline date is established, as follows: greater than or

equal to 1 microgram per cubic meter (annual average) for sulfur dioxide, nitrogen dioxide or PM10; or greater than or

equal to 0.3 microgram per cubic meter (annual average) for PM2.5. Area redesignations under R18-2-217 that would

CLASS III

Particulate matter: PM2.5

Annual arithmetic mean 8

24-hr maximum 18

Particulate matter: PM10

Annual arithmetic mean 34

24-hour maximum 60

Sulfur dioxide:

Annual arithmetic mean 40

24-hour maximum 182

3-hour maximum 700

Nitrogen dioxide:

Annual arithmetic mean 50

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redesignate a baseline area cannot may not intersect or be smaller than the area of impact of any new major source as

defined in R18-2-401 or a major modification which either:

1. Establishes a minor source baseline date;, or

2. Is subject to either 40 CFR 52.21 or R18-2-406 and would be constructed in Arizona.

E. The maximum allowable concentration of any air pollutant in any area to which subsection (A) applies shall not exceed a

concentration for each pollutant equal to the concentration permitted under the ambient air quality standards contained in

this Article.

F. For purposes of determining compliance with the maximum allowable increases in ambient concentrations of an air pollutant, the following concentrations of such pollutant shall not be taken into account:

1. Concentration of such pollutant attributable to the increase in emissions from major and stationary sources which

have converted from the use of petroleum products, or natural gas, or both, by reason of a natural gas curtailment

order which is in effect under the provisions of Sections sections 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974, 15 U.S.C. 792, over the emissions from such sources before the effective date of such

order;

2. The concentration of such pollutant attributable to the increase in emissions from major and stationary sources which

have converted from using gas by reason of a natural gas curtailment plan in effect pursuant to the Federal Power Act,

16 U.S.C. 792 - 825r, over the emissions from such sources before the effective date of the natural gas curtailment

plan;

3. Concentrations of PM10 attributable to the increase in emissions from construction or other temporary activities of a

new or modified source;

4. The increase in concentrations attributable to new sources outside the United States over the concentrations attributable to existing sources which are included in the baseline concentration; and

5. Concentrations attributable to the temporary increase in emissions of sulfur dioxide, nitrogen oxides, or PM10 from

major sources as defined in R18-2-401 when the following conditions are met:

a. The operating permit issued to such sources specifies the time period during which the temporary emissions

increase of sulfur dioxide, nitrogen oxides, or PM10 would occur. Such time period shall not be renewable and

shall not exceed two years unless a longer period is specifically approved by the Director.

b. No emissions increase shall be approved which would either:

i. Impact any portion of any Class I area or any portion of any other area where an applicable incremental

ambient standard is known to be violated in that portion;, or

ii. Cause or contribute to the violation of a state ambient air quality standard.

c. The operating permit issued to such sources specifies that, at the end of the time period described in subsection

(F)(5)(a), the emissions levels from the sources would not exceed the levels occurring before the temporary

emissions increase was approved.

6. The exception granted with respect to increment consumption under subsections (F)(1) and (2) shall not apply more

than five years after the effective date of the order or natural gas curtailment plan on which the exception is based.

G. If the Director or the Administrator determines that the SIP is substantially inadequate to prevent significant deterioration

or that an applicable maximum allowable increase as specified in subsection (A) is being violated, the SIP shall be revised

to correct the inadequacy or the violation. The SIP shall be revised within 60 days of such a finding by the Director or

within 60 days following notification by the Administrator, or by such later date as prescribed by the Administrator after

consultation with the Director.

H. The Director shall review the adequacy of the SIP on a periodic basis and within 60 days of such time as information

becomes available that an applicable maximum allowable increase is being violated.

R18-2-219. Violations Repealed

A. One exceedance per year of the ambient air quality standards prescribed in this Article shall be allowed for each pollutant

at each monitoring site.

B. Each additional exceedance at each site shall constitute a violation of ambient air quality standards.

C. The provisions of subsection (A) shall not apply to any of the following:

1. The annual and quarterly standards.

2. The standards for ozone prescribed in R18-2-203.

3. The primary and secondary 24-hour PM10 standards prescribed in R18-2-201.

ARTICLE 3. PERMITS AD PERMIT REVISIOS

R18-2-301. Definitions

The following definitions, and the definitions contained in Article 1 of this Chapter and A.R.S. § 49-401.01 apply to this Article unless the context otherwise requires:

1. “Alternative method” means any method of sampling and analyzing for an air pollutant which is not a reference or

equivalent method but which has been demonstrated to produce results adequate for the Director’s determination of

compliance in accordance with R18-2-311(D).

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2. “Billable permit action” means the issuance or denial of a new permit, significant permit revision, or minor permit

revision, or the renewal of an existing permit.

3. “Capacity factor” means the ratio of the average load on a machine or equipment for the period of time considered to

the capacity rating of the machine or equipment.

4. “CEM” means a continuous emission monitoring system as defined in R18-2-101.

5. “Complete” means, in reference to an application for a permit, permit revision or registration, that the application

contains all the information necessary for processing the application. Designating an application complete for purposes of a permit, permit revisions or registration processing does not preclude the Director from requesting or

accepting any additional information.

6. “Dispersion technique” means any technique which attempts to affect the concentration of a pollutant in the ambient

air by any of the following:

a. Using that portion of a stack which exceeds good engineering practice stack height; 

b. Varying the rate of emission of a pollutant according to atmospheric conditions or ambient concentrations of that

pollutant; or

c. Increasing final exhaust gas plume rise by manipulating source process parameters, exhaust gas parameters,

stack parameters, or combining exhaust gases from several existing stacks into one stack; or other selective handling of exhaust gas streams so as to increase the exhaust gas plume rise. This shall not include any of the following: 

i. The reheating of a gas stream, following use of a pollution control system, for the purpose of returning the

gas to the temperature at which it was originally discharged from the facility generating the gas stream. 

ii. The merging of exhaust gas streams under any of the following conditions: 

(1) The source owner or operator demonstrates that the facility was originally designed and constructed

with such merged gas streams; 

(2) After July 8, 1985, such merging is part of a change in operation at the facility that includes the installation of pollution controls and is accompanied by a net reduction in the allowable emissions of a pollutant, applying only to the emission limitation for that pollutant; or 

(3) Before July 8, 1985, such merging was part of a change in operation at the facility that included the

installation of emissions control equipment or was carried out for sound economic or engineering reasons. Where there was an increase in the emission limitation or, in the event that no emission limitation

was in existence prior to the merging, an increase in the quantity of pollutants actually emitted prior to

the merging, the reviewing agency shall presume that merging was significantly motivated by an intent

to gain emissions credit for greater dispersion. Absent a demonstration by the source owner or operator

that merging was not significantly motivated by such intent, the reviewing agency shall deny credit for

the effects of such merging in calculating the allowable emissions for the source. 

iii. Smoke management in agricultural or silvicultural prescribed burning programs. 

iv. Episodic restrictions on residential woodburning and open burning. 

v. Techniques which increase final exhaust gas plume rise where the resulting allowable emissions of sulfur

dioxide from the facility do not exceed 5,000 tons per year. 

7. “Emissions allowable under the permit” means a permit term or condition determined at issuance to be required by an

applicable requirement that establishes an emissions limit (including a work practice standard) or an emissions cap

that the source has assumed to avoid an applicable requirement to which the source would otherwise be subject.

8. “Fossil fuel-fired steam generator” means a furnace or boiler used in the process of burning fossil fuel for the primary

purpose of producing steam by heat transfer. 

9. “Fuel oil” means Number 2 through Number 6 fuel oils as specified in ASTM D-396-90a (Specification for Fuel

Oils), gas turbine fuel oils Numbers 2-GT through 4-GT as specified in ASTM D-2880-90a (Specification for Gas

Turbine Fuel Oils), or diesel fuel oils Numbers 2-D and 4-D as specified in ASTM D-975-90a (Specification for Diesel Fuel Oils).

10. “Itemized bill” means a breakdown of the permit processing time into the categories of pre-application activities,

completeness review, substantive review, and public involvement activities, and within each category, a further

breakdown by employee name.

11. “Major source threshold” means the lowest applicable emissions rate for a pollutant that would cause the source to be

a major source at the particular time and location, under R18-2-101(64) the definition of major source in R18-2-101.

12. “Minor NSR Modification” means any of the following changes that do not qualify as a major source or major modification:

a. Any physical change in or change in the method of operation of an emission unit or a stationary source that

either:

i. Increases the potential to emit of a regulated minor NSR pollutant by an amount greater than the permitting

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tionary source in an amount greater than the permitting exemption thresholds.

b. Construction of one or more new emissions units that have the potential to emit regulated minor NSR pollutants

at an amount greater than the permitting exemption threshold.

c. A change covered by subsection (12)(a) or (b) of this Section constitutes a minor NSR modification regardless of

whether there will be a net decrease in total source emissions or a net increase in total source emissions that is

less than the permitting exemption threshold as a result of decreases in the potential to emit of other emission

units at the same stationary source.

d. For the purposes of this subsection the following do not constitute a physical change or change in the method of

operation:

i. A change consisting solely of the construction of, or changes to, a combination of emissions units qualifying

as a categorically exempt activity.

ii. For a stationary source that is required to obtain a Class II permit under R18-2-302 and that is subject to

source-wide emissions caps under R18-2-306.01 or R18-2-306.02, a change that will not result in the violation of the existing emissions cap for that regulated minor NSR pollutant.

iii. Replacement of an emission unit by a unit with a potential to emit regulated minor NSR pollutants that is

less than or equal to the potential to emit of the existing unit, provided the replacement does not cause an

increase in emissions at other emission units at the stationary source. A unit installed under this provision is

subject to any limits applicable to the unit it replaced.

iv. Routine maintenance, repair, and replacement.

v. Use of an alternative fuel or raw material by reason of an order under Sections 2(a) and (b) of the Energy

Supply and Environmental Coordination Act of 1974, 15 U.S.C. 792, or by reason of a natural gas curtailment plan under the Federal Power Act, 16 U.S.C. 792 to 825r.

vi. Use of an alternative fuel by reason of an order or rule under Section 125 of the Act.

vii. Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal

solid waste.

viii. Use of an alternative fuel or raw material by a stationary source that either:

(1) The source was capable of accommodating before December 12, 1976, unless the change would be prohibited under any federally enforceable permit condition established after December 12, 1976, under 40

CFR 52.21, or under Articles 3 or 4 of this Chapter; or

(2) The source is approved to use under any permit issued under 40 CFR 52.21, or under Articles 3 or 4 of

this Chapter.

ix. An increase in the hours of operation or in the production rate, unless the change would be prohibited under

any federally enforceable permit condition established after December 12, 1976, under 40 CFR 52.21, or

under Articles 3 or 4 of this Chapter.

x. Any change in ownership at a stationary source

xi. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration

project, if the project complies with:

(1) The SIP, and

(2) Other requirements necessary to attain and maintain the national ambient air quality standards during

the project and after it is terminated.

xii. For electric utility steam generating units located in attainment and unclassifiable areas only, the installation

or operation of a permanent clean coal technology demonstration project that constitutes repowering, if the

project does not result in an increase in the potential to emit any regulated pollutant emitted by the unit. This

exemption applies on a pollutant-by-pollutant basis.

xiii. For electric utility steam generating units located in attainment and unclassifiable areas only, the reactivation

of a very clean coal-fired electric utility steam generating unit.

e. For purposes of this subsection:

i. “Potential to emit” means the lower of a source’s or emission unit’s potential to emit or its allowable emissions.

ii. In determining potential to emit, the fugitive emissions of a stationary source shall not be considered unless

the source belongs to a section 302(j) category.

iii. All of the roadways located at a stationary source constitute a single emissions unit.

12.13. “NAICS” means the 5- or 6-digit five- or six-digit North American Industry Classification System-United States,

1997, number for industries used by the U.S. Department of Commerce.

13.14. “Permit processing time” means all time spent by Air Quality Division staff or consultants on tasks specifically

related to the processing of an application for the issuance or renewal of a particular permit or permit revision, including time spent processing an application that is denied.

14.15. “Quantifiable” means, with respect to emissions, including the emissions involved in equivalent emission limits

and emission trades, capable of being measured or otherwise determined in terms of quantity and assessed in terms of

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character. Quantification may be based on emission factors, stack tests, monitored values, operating rates and averaging times, materials used in a process or production, modeling, or other reasonable measurement practices.

15. “Reasonably available control technology” (RACT) means, for facilities subject to an existing source performance

standard, the emissions limitation of the existing source performance standard.

16. “Registration” means a registration under R18-2-302.01.

16.17. “Replicable” means, with respect to methods or procedures, sufficiently unambiguous that the same or equivalent

results would be obtained by the application of the method or procedure by different users.

17.18. “Responsible official” means one of the following: 

a. For a corporation: a president, secretary, treasurer, or vice-president of the corporation in charge of a principal

business function, or any other person who performs similar policy or decision-making functions for the corporation, or a duly authorized representative of such person if the representative is responsible for the overall operation of one or more manufacturing, production, or operating facilities applying for or subject to a permit and

either: 

i. The facilities employ more than 250 persons or have gross annual sales or expenditures exceeding $25 million (in second quarter 1980 dollars); or 

ii. The delegation of authority to such representatives is approved in advance by the permitting authority; 

b. For a partnership or sole proprietorship: a general partner or the proprietor, respectively; 

c. For a municipality, state, federal, or other public agency: Either a principal executive officer or ranking elected

official. For the purposes of this Article, a principal executive officer of a federal agency includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency (e.g., a

Regional Administrator of EPA); or 

d. For affected sources: 

i. The designated representative in so far as actions, standards, requirements, or prohibitions under Title IV of

the Act or the regulations promulgated there under are concerned; and 

ii. The designated representative for any other purposes under 40 CFR 70.

18.19. “Small source” means a source with a potential to emit, without controls, less than the rate defined as significant

permitting exemption thresholds in R18-2-101, but required to obtain a permit solely because it is subject to a standard under 40 CFR 63.

19.20. “Startup” means the setting in operation of a source for any purpose.

20.21. “Synthetic minor” means a source with a permit that contains voluntarily accepted emissions limitations, controls,

or other requirements (for example, a cap on production rates or hours of operation, or limits on the type of fuel)

under R18-2-306.01 to reduce the potential to emit to a level below the major source threshold.

22. “Uncontrolled potential to emit” means the maximum capacity of a stationary source to emit a pollutant, excluding

secondary emissions, under its physical and operational design. Any physical or operational limitation on the capacity

of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on

the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is subject to an elective limit under R18-2-302.01(F).

R18-2-302. Applicability; Registration; Classes of Permits

A. Except as otherwise provided in this Article, no person shall commence begin actual construction of, operate, or make a

modification to any stationary source subject to regulation under this Article, without obtaining a registration, permit or

permit revision from the Director.

B. There shall be two classes of permits as follows Class I and II permits and registrations shall be required as follows: 

1. A Class I permit shall be required for a person to commence begin actual construction of or operate any of the following:

a. Any major source,

b. Any solid waste incineration unit required to obtain a permit pursuant to Section section 129(e) of the Act,

c. Any affected source, or

d. Any stationary source in a source category designated by the Administrator pursuant to 40 CFR 70.3 and adopted

by the Director by rule.

2. Unless a Class I permit is required, a Class II permit shall be required for:

a. A person to commence begin actual construction of or operate any of the following:

i. Any source, including an area source, subject to a standard, limitation, or other requirement under Section

111 of the Act;

ii. Any source, including an area source, subject to a standard or other requirement under Section 112 of the

Act, except that a source is not required to obtain a permit solely because it is subject to regulations or

requirements under Section 112 (r) of the Act;

iii. Any any stationary source that emits or has the uncontrolled potential to emit, without controls significant

quantities of regulated air NSR pollutants;

iv. Stationary rotating machinery of greater than 325 brake horsepower; or

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v. Fuel-burning equipment which, at a location or property other than a one or two family residence, is fired at

a sustained rate of more than 1 million Btu per hour for more than an eight-hour period.

b. A person to modify make a physical or operational change to a stationary source which that would cause it the

source to emit, or have the uncontrolled potential to emit significant quantities of regulated air NSR pollutants

greater than or equal to those specified in subsection (B)(2)(a)(iii).

c. A person to begin actual construction of a source subject to Article 17 of this Chapter.

d. A person to make a modification subject to Article 17 of this Chapter to a source for which a permit has not been

issued under this Article.

e. A person to begin actual construction of or modify a stationary source that otherwise would be subject to registration but that the Director has determined requires a permit under R18-2-302.01(B)(3)(b).

3. Until the effective date of the Administrator’s approval of the registration program in R18-2-302.01 into the state

implementation plan, unless a Class I permit is required, a Class II permit shall be required for any of the activities

that would require a registration under subsections (B)(4)(b) and (c).

4. After the effective date of the Administrator’s approval of R18-2-302.01 into the state implementation plan, unless a

Class I or II permit is required, registration shall be required for:

a. A person to begin actual construction of or operate any stationary source that emits or has the maximum capacity

to emit under its physical and operational design, without taking any limitations on operations or air pollution

controls into account, any regulated minor NSR pollutant in an amount greater than or equal to a permitting

exemption threshold.

b. A person to begin actual construction of or operate any stationary source subject to a standard under section 111

of the Act, except that a stationary source is not required to register solely because it is subject to any of the following standards:

i. 40 CFR 60, Subpart AAA (Residential Wood Heaters).

ii. 40 CFR 60, Subpart IIII (Stationary Compression Ignition Internal Combustion Engines).

iii. 40 CFR 60, Subpart JJJJ (Stationary Spark Ignition Internal Combustion Engines).

c. A person to begin actual construction of or operate any stationary source, including an area source, subject to a

standard under section 112 of the Act, except that a stationary source is not required to register solely because it

is subject to any of the following standards:

i. 40 CFR 61.145.

ii. 40 CFR 63, Subpart ZZZZ (Reciprocating Internal Combustion Engines).

iii. 40 CFR 63, Subpart WWWWW (Ethylene Oxide Sterilizers).

iv. 40 CFR 63, Subpart CCCCCC (Gasoline Distribution).

v. 40 CFR 63, Subpart HHHHHH (Paint Stripping and Miscellaneous Surface Coating Operations).

vi. 40 CFR 63, Subpart JJJJJJ (Industrial, Commercial, and Institutional Boilers Area Sources), published at 76

FR 15554 (March 21, 2011).

vii. A regulation or requirement under section 112(r) of the Act.

d. A physical or operational change to a source that would cause the source to emit or have the maximum capacity

to emit under its physical and operational design, without taking any limitations on operations or air pollution

control into account, any regulated minor NSR pollutant in excess of a permitting exemption threshold.

C. Notwithstanding subsections (A) and (B), the following stationary sources do not require a permit or registration unless

the source is a major source, or unless operation without a permit would result in a violation of the Act:

1. Sources subject to 40 CFR 60, Subpart AAA, Standards of Performance for New Residential Wood Heaters;

2. Sources and source categories that would be required to obtain a permit solely because they are subject to 40 CFR

61.145; and

1. A stationary source that consists solely of a single categorically exempt activity plus any combination of trivial activities.

3.2. Agricultural equipment used in normal farm operations. “Agricultural equipment used in normal farm operations”

does not include equipment classified as a source that requires a permit under Title V of the Act, or that is subject to a

standard under 40 CFR 60, or 61 or 63.

D. No person may construct or reconstruct any major source of hazardous air pollutants, unless the Director determines that

maximum achievable control technology emission limitation (MACT) for new sources under Section 112 of the Act will

be met. If MACT has not been established by the Administrator, such determination shall be made on a case-by-case basis

pursuant to 40 CFR 63.40 through 63.44, as incorporated by reference in R18-2-1101(B). For purposes of this subsection,

constructing and reconstructing a major source shall have the meaning prescribed in 40 CFR 63.41.

E. Elective limits or controls adopted under R18-2-302.01(F) shall not be considered in determining whether a source

requires registration but shall be considered in determining any of the following:

1. Whether the registration is subject to the public participation requirements of R18-2-330, as provided in R18-2-

302.01(B)(3)(a).

2. Whether review for possible interference with attainment or maintenance of ambient standards is required under R18-

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2-302.01(B)(3)(b).

3. Whether the source requires a Class II permit, as provided in subsection (B)(2)(a) or (b).

F. The fugitive emissions of a stationary source shall not be considered in determining whether the source requires a Class II

permit under subsection (B)(2)(a) or (b) or a registration under subsection (B)(4)(a) or (e), unless the source belongs to a

section 302(j) category. If a permit is required for a stationary source, the fugitive emissions of the source shall be subject

to all of the requirements of this Article.

G. Notwithstanding subsections (A) and (B) of this Section, a person may begin actual construction, but not operation, of a

source requiring a Class I permit or Class I permit revision upon the Director’s issuance of the proposed final permit or

proposed final permit revision.

R18-2-301.01. Source Registration Requirements

A. Application. An application for registration shall be submitted on the form specified by the Director and shall include the

following information:

1. The name of the applicant.

2. The physical location of the source, including the street address, city, county, zip code and latitude and longitude

coordinates.

3. The source’s uncontrolled potential to emit each regulated minor NSR pollutant calculated in accordance with R18-2-

327(C).

4. Identification of any elective limits or controls adopted under subsection (F).

5. In the case of a modification, each increase in the source’s potential to emit that exceeds the applicable threshold in

subsection (G)(1)(a).

6. Identification of the method used to determine the potential to emit or change in potential to emit specified under

R18-2-302(B)(4)(a) or (d) or subsection (G)(1)(a) of this Section.

7. Process information for the source, including a list of emission units, design capacity, operations schedule, and identification of emissions control devices.

B. Registration Processing Procedures.

1. The Department shall complete a review of a registration application for administrative completeness within 30 calendar days, calculated in accordance with A.A.C. R18-1-503, after its receipt.

2. The Department shall complete a substantive review and take final action on a registration application within 60 calendar days if no hearing is requested, and 90 calendar days if a hearing is requested, calculated in accordance with

A.A.C. R18-1-504, after the application is administratively complete.

3. Public Participation.

a. Except as provided in subsection (B)(3)(b), a registration for construction of a source shall be subject to the public notice and participation requirements of R18-2-330. The materials relevant to the registration decision made

available to the public under R18-2-330(D)(11) shall include any determination made or modeling conducted by

the Director under subsection (B)(3)(b).

b. A registration for construction of a source shall not be subject to the public notice and participation requirements

of R18-2-330, if the source’s uncontrolled potential to emit each regulated minor NSR pollutant is less than the

applicable permitting exemption threshold.

C. Review for NAAQS Compliance; Requirement to Obtain a Permit.

1. The Director shall review each application for registration of a source with the uncontrolled potential to emit any regulated minor NSR pollutant in an amount equal to or greater than the permitting exemption threshold. The purpose of

the review shall be to determine whether the new or modified source may interfere with attainment or maintenance of

a standard imposed in Article 2 of this Chapter. In making the determination required by this subsection, the Director

shall take into account the following factors:

a. The source’s emission rates, including fugitive emission rates, taking into account any elective limits or controls

adopted under subsection (F).

b. The location of emission units within the facility and their proximity to the ambient air.

c. The terrain in which the source is or will be located.

d. The source type.

e. The location and emissions of nearby sources.

f. Background concentrations of regulated minor NSR pollutants.

2. The Director may undertake the review specified in subsection (C)(1) for a source with the uncontrolled potential to

emit regulated minor NSR pollutants in an amount less than the permitting exemption threshold.

3. If the Director determines under subsection (C)(1) or (C)(2) that a source’s emissions may interfere with attainment

or maintenance of a standard imposed in Article 2 of this Chapter, the Director shall perform a SCREEN model run

for each regulated minor NSR pollutant for which that determination has been made.

4. If the Director determines, based on performance of the SCREEN model pursuant to subsection (C)(3), that a source’s

emissions, taking into account any elective limits or controls adopted under subsection (F), will interfere with attainment of a standard imposed in Article 2 of this Chapter, the Director shall deny the application for registration. NotAPPENDIX A - NFRM
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withstanding R18-2-302(B)(4), the owner or operator of the source shall be required to obtain a permit under R18-2-

302 and shall comply with R18-2-334 before beginning actual construction of the source or modification.

D. Notwithstanding R18-2-302(B)(4)(b) and (c), the Director shall deny an application for registration for a source subject to

a standard under section 111 or 112 of the Act and require the owner or operator to obtain a permit under R18-2-302, if the

Director determines based on the following factors that the requirement to obtain a permit is warranted:

1. The size and complexity of the source.

2. The complexity of the section 111 or 112 standard applicable to the source.

3. The public health or environmental risks posed by the pollutants subject to regulation under the section 111 or 112

standard.

E. Registration Contents. A registration shall contain the following elements:

1. Identification of each emission unit subject to an applicable requirement and all applicable requirements that apply to

the unit, including any testing, monitoring, recordkeeping and reporting obligations imposed by the applicable

requirement or by R18-2-312.

2. Any elective limits or controls and associated operating, maintenance, monitoring and recordkeeping requirements

adopted pursuant to subsection (F).

3. A requirement to retain any records required by the registration at the source for at least three years in a form that is

suitable for expeditious inspection and review.

4. For any source that has adopted elective limits or controls under subsection (F), a requirement to submit an annual

compliance report on the form provided by the Director in the registration.

F. Elective Limits or Controls. The owner or operator of a source requiring registration may elect to include any of the following emission limitations in the registration, provided the registration also includes the operating, maintenance, monitoring and recordkeeping requirements specified below for the limitation.

1. A limitation on the hours of operation of any process or combination of processes. The owner or operator shall maintain a log or readily available business records showing actual operating hours through the preceding operating day

for the process or processes subject to the limitation.

2. A limitation on the production rate for any process or combination of processes. The owner or operator shall maintain

a log or readily available business records showing the actual production rate through the preceding operating day for

the process or processes subject to the limitation.

3. A requirement to operate a fabric filter for the control of particulate matter emissions.

a. The owner or operator shall operate the fabric filter at all times that the emission unit controlled by the fabric filter is operated.

b. The owner or operator shall inspect the fabric filter at least once per month for tears and leaks and shall promptly

repair any tears or leaks identified.

c. The owner or operator shall operate and maintain the fabric filter in substantial compliance with the manufacturer’s operation and maintenance recommendations.

d. The owner or operator shall keep a log or readily available business records of the inspections required by subsection (F)(3)(b) and the maintenance activities required by subsection (F)(3)(c).

4. Limitations on the concentration of VOC or hazardous air pollutants in process materials. The owner or operator shall

maintain a log or readily available business records showing the VOC or hazardous air pollutant concentration in

each material subject to such a limitation used during the current calendar year.

G. Revised Registrations.

1. Unless a Class II permit is required under R18-2-302(B)(2)(b), the owner or operator of a registered source shall file

a revised registration on the occurrence of any of the following:

a. A modification to the source that would result in an increase in the source’s uncontrolled potential to emit

exceeding any of the following amounts:

i. 2.5 tons per year for NOx, SO2, PM10, PM2.5, VOC or CO.

ii. 0.3 tons per year for lead.

b. Relocation of a portable source.

c. The transfer of the source to a new owner.

2. The requirements of subsection (B) shall not apply to a revised registration. The owner or operator may begin actual

construction and operation of the modified, relocated or transferred source on filing the revised registration.

H. Registration Term.

1. A source’s registration shall expire five years after the date of issuance of the last registration for the source or any

modification to the source.

2. A source shall submit an application for renewal of a registration not later than six months before expiration of the

registration’s term.

3. If a source submits a timely and complete application for renewal of a registration, the source’s authorization to operate under its existing registration shall continue until the Director takes final action on the application.

4. The Director may terminate a registration under R18-2-321(C). If the Director terminates a registration under R18-2-

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321(C)(3), the owner or operator shall be required to apply for a permit for the source under R18-2-302.

I. Delayed Effective Date. This Section shall take effect on the effective date of the Administrator’s action approving it as

part of the state implementation plan.

R18-2-303. Transition from Installation and Operating Permit Program to Unitary Permit Program; Registration

Transition; Minor SR Transition

A. An installation or operating permit issued before September 1, 1993, and the authority to operate, as provided in Laws

1992, Ch. 299, § 65, continues in effect until either of the following occurs:

1. The the installation or operating permit is terminated, or until the.

2. The Director issues or denies a Class I or Class II permit to the source, whichever is earlier.

B. The terms and conditions of installation permits issued before September 1, 1993, or in permits or permit revisions issued

under R18-2-302 and authorizing the construction or modification of a stationary source, remain federal applicable

requirements unless modified or revoked by the Director.

C. All sources in existence on September 1, 2012, requiring a registration shall provide notice to the Director by no later than

December 1, 2012, on a form provided by the Director.

D. All sources requiring a registration that are in existence on the date R18-2-302.01 becomes effective under R18-2-

302.01(I) may submit applications for registration at any time after R18-2-302.01 is effective and shall submit an application no later than 180 days after receipt of written notice from the Director that an application is required. Applications to

register the construction or modification of a source must be submitted, and the registration must be issued, before the

applicant begins actual construction of the source or modification.

E. Sources in existence on the date R18-2-334 becomes effective under R18-2-334(I) are not subject to R18-2-334, unless

the source undertakes a minor NSR modification. Notwithstanding any other provision of this Chapter, R18-2-334 shall

apply only to applications for permits or permit revisions filed after the date R18-2-334 takes effect under R18-2-334(I).

B. Sources requiring Class I permits that are in existence on the date this Section becomes effective shall submit permit

applications on or before the following dates:

1. Kraft pulp mills: 5/1/94

2. Metallic mineral processing plants: 5/1/94

3. Portland cement plants: 8/1/94

4. Non-metallic mineral processing plants: 8/1/94

5. Lumber mills: 8/1/94

6. Primary copper smelters: 11/1/94

7. Lime manufacturing plants: 11/1/94

8. Nitric acid plants: 11/1/94

9. Petroleum refineries: 11/1/94

10. Electric utility steam generating units: 2/1/95

11. Combined cycle gas turbines: 2/1/95

12. Fossil-fuel fired industrial and commercial equipment: 2/1/95

13. Stationary gas turbines: 5/1/95

14. Any other source requiring a Class I permit: 5/1/95

C. Except as provided in subsection (D), sources requiring Class II permits that are in existence on the date this Section

becomes effective may submit permit applications at any time after this Section is effective and shall submit applications

within 180 days of receipt of written notice from the Director that an application is required.

D. All sources requiring a Class II permit under R18-2-302(B)(2)(b)(i) and (ii) shall submit complete permit applications no

later than May 1, 1998.

E. Any application for an operating permit or an installation permit that is determined to be complete prior to the effective

date of this Section but for which no permit has been issued shall be considered complete for the purposes of this Section.

In issuing a permit pursuant to such an application, the Director shall include in the permit all elements addressed in the

application and a schedule of compliance for submitting an application for a permit revision to address the elements

required to be in the permit that were not included in the operating permit or installation permit application. No later than

six months after the effective date of this Section, the Director shall take final action on an operating permit application or

an installation permit application determined to be complete prior to the effective date of this Section.

F. Unless otherwise provided, R18-2-317 through R18-2-323 shall apply to sources with permits issued before the effective

date of this Section.

R18-2-304. Permit Application Processing Procedures

A. Unless otherwise noted, this Section applies to each source requiring a Class I or II permit or permit revision.

B. Standard Application Form and Required Information. To apply for any permit in this Chapter, applicants shall complete

the “Standard Permit Application Form” and supply all information required by the “Filing Instructions” as shown in

Appendix 1. The Director, either upon the Director’s own initiative or on the request of a permit applicant, may waive a

requirement that specific information or data be submitted in the application for a Class II permit for a particular source or

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category of sources if the Director determines that the information or data would be unnecessary to determine all of the

following:

1. The applicable requirements to which the source may be subject;

2. That the source is so designed, controlled, or equipped with such air pollution control equipment that it may be

expected to operate without emitting or without causing to be emitted air contaminants in violation of the provisions

of A.R.S. Title 49, Chapter 3, Article 2 and this Chapter;

3. The fees to which the source may be subject;

4. A proposed emission limitation, control, or other requirement that meets the requirements of R18-2-306.01 or R18-2-

306.02.

C. Unless otherwise required by R18-2-303(B) through (D), a A timely application is:

1. For a source, other than a major source, applying for a permit for the first time, that becomes subject to the permit

program as a result of a change in regulation and not as a result of construction or a physical or operational change,

one that is submitted within 12 months after the source becomes subject to the permit program.

2. For purposes of permit renewal, a timely application is one that is submitted at least six months, but not more than 18

months, prior to the date of permit expiration.

3. For initial phase II acid rain permits under Title IV of the Act and regulations incorporated pursuant to R18-2-333,

one that is submitted to the Director by January 1, 1996, for sulfur dioxide, and by January 1, 1998, for nitrogen

oxides.

4.3. Any source under R18-2-326(B)(3) R18-2-326(A)(3) which becomes subject to a standard promulgated by the

Administrator pursuant to Section section 112(d) of the Act shall, within 12 months of the date on which the standard

is promulgated, submit an application for a permit revision demonstrating how the source will comply with the standard.

D. If an applicable implementation plan allows the determination of an alternative emission limit, a source may, in its application, propose an emission limit that is equivalent to the emission limit otherwise applicable to the source under the

applicable implementation plan. The source shall also demonstrate that the equivalent limit is quantifiable, accountable,

enforceable, and subject to replicable compliance determination procedures.

E. A complete application shall comply with all of the following:

1. To be complete, an application shall provide all information required by subsection (B) (standard application form

section). An application for permit revision only need supply information related to the proposed change, unless the

source’s proposed permit revision will change the permit from a Class II permit to a Class I permit. A responsible

official shall certify the submitted information consistent with subsection (H) (Certification of Truth, Accuracy, and

Completeness). 

2. An application for a new permit or permit revision shall contain an assessment of the applicability of the requirements

of Article 4 of this Chapter. If the applicant determines that the proposed new source is a major source as defined in

R18-2-401, or the proposed permit revision constitutes a major modification as defined in R18-2-101, then the application shall comply with all applicable requirements of Article 4.

3. An application for a new permit or permit revision shall contain an assessment of the applicability of Minor New

Source Review requirements in R18-2-334. If the applicant determines that the proposed new source is subject to

R18-2-334, or the proposed permit revision constitutes a Minor NSR Modification, then the application shall comply

with all applicable requirements of R18-2-334.

3.4. An application for a new permit or a permit revision shall contain an assessment of the applicability of the requirements established under Article 17 of this Chapter. If the applicant determines that the proposed new source permit or

permit revision is subject to the requirements of Article 17 of this Chapter, the application shall comply with all applicable requirements of that Article.

4.5. Except for proposed new major sources or major modifications subject to the requirements of Article 4 of this Chapter, an application for a new permit, a permit revision, or a permit renewal shall be deemed to be complete unless,

within 60 days of receipt of the application, the Director notifies the applicant by certified mail that the application is

not complete. 

5.6. If a source wishes to voluntarily enter into an emissions limitation, control, or other requirement pursuant to R18-2-

306.01, the source shall describe that emissions limitation, control, or other requirement in its application, along with

proposed associated monitoring, recordkeeping, and reporting requirements necessary to demonstrate that the emissions limitation, control, or other requirement is permanent, quantifiable, and otherwise enforceable as a practical

matter.

6.7. If, while processing an application that has been determined or deemed to be complete, the Director determines that

additional information is necessary to evaluate or take final action on that application, the Director may request such

information in writing, delivered by certified mail, and set a reasonable deadline for a response. Except for minor permit revisions as set forth in R18-2-319, a source’s ability to continue operating without a permit, as set forth in this

Article subsection (J), shall be in effect from the date the application is determined to be complete until the final permit is issued, provided that the applicant submits any requested additional information by the deadline specified by

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the Director. If the Director notifies an applicant that its application is not complete under subsection (E)(4), the

application may not be deemed automatically complete until an additional 60 days after receipt of the next submittal

by the applicant. The Director may, after one submittal by the applicant pursuant to this subsection, reject an application that is determined to be still incomplete and shall notify the applicant of the decision by certified mail. After a

rejection under this subsection, the Director may deny the permit or revoke an existing permit, as applicable.

7.8. The completeness determination shall not apply to revisions processed through the minor permit revision process.

8.9. Activities which are insignificant pursuant to the definition of insignificant activities in R18-2-101 R18-2-101(57)

shall be listed in the application. The application need not provide emissions data regarding insignificant activities. If

the Director determines that an activity listed as insignificant does not meet the requirements of the definition of

insignificant activities in R18-2-101 R18-2-101(57), the Director shall notify the applicant in writing and specify

additional information required.

9.10. If a permit applicant requests terms and conditions allowing for the trading of emission increases and decreases in

the permitted facility solely for the purpose of complying with a federally enforceable emission cap that is established

in the permit independent of otherwise applicable requirements, the permit applicant shall include in its application

proposed replicable procedures and permit terms that ensure the emissions trades are quantifiable and enforceable.

10.11. The Director is not in disagreement with a notice of confidentiality submitted with the application pursuant to

A.R.S. § 49-432.

F. A source applying for a Class I permit that has submitted information with an application under a claim of confidentiality

pursuant to A.R.S. § 49-432 and R18-2-305 shall submit a copy of such information directly to the Administrator.

G. Duty to Supplement or Correct Application. Any applicant who fails to submit any relevant facts or who has submitted

incorrect information in a permit application shall, upon becoming aware of such failure or incorrect submittal, promptly

submit such supplementary facts or corrected information. In addition, an applicant shall provide additional information

as necessary to address any requirements that become applicable to the source after the date it filed a complete application

but prior to release of a proposed permit.

H. Certification of Truth, Accuracy, and Completeness. Any application form, report, or compliance certification submitted

pursuant to this Chapter shall contain certification by a responsible official of truth, accuracy, and completeness. This certification and any other certification required under this Article shall state that, based on information and belief formed

after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

I. Action on Application.

1. The Director shall issue or deny each permit according to the provisions of A.R.S. § 49-427. The Director may issue

a permit with a compliance schedule for a source that is not in compliance with all applicable requirements at the time

of permit issuance.

2. In addition, a permit may be issued, revised, or renewed only if all of the following conditions have been met:

a. The application received by the Director for a permit, permit revision, or permit renewal shall be complete

according to subsection (E).

b. Except for revisions qualifying as administrative or minor under R18-2-318 and R18-2-319, all of the requirements for public notice and participation under R18-2-330 shall have been met.

c. For Class I permits, the Director shall have complied with the requirements of R18-2-307 for notifying and

responding to affected states, and if applicable, other notification requirements of R18-2-402(D)(2) and R18-2-

410(C)(2).

d. For Class I and II permits, the conditions of the permit shall require compliance with all applicable requirements.

e. For permits for which an application is required to be submitted to the Administrator under R18-2-307(A), and to

which the Administrator has properly objected to its issuance in writing within 45 days of receipt of the proposed

final permit and all necessary supporting information from the Department, the Director has revised and submitted a proposed final permit in response to the objection and EPA has not objected to this proposed final permit

within 45 days of receipt.

f. For permits to which the Administrator has objected to issuance pursuant to a petition filed under 40 CFR

70.8(d), the administrator’s Administrator’s objection has been resolved.

g. For a Class II permit that contains voluntary emission limitations, controls, or other requirements established

pursuant to R18-2-306.01, the Director shall have complied with the requirement of R18-2-306.01(C) to provide

the Administrator with a copy of the proposed permit.

3. If the Director denies a permit under this Section, a notice shall be served on the applicant by certified mail, return

receipt requested. The notice shall include a statement detailing the grounds for the denial and a statement that the

permit applicant is entitled to a hearing. 

4. The Director shall provide a statement that sets forth the legal and factual basis for the proposed permit conditions

including references to the applicable statutory or regulatory provisions. The Director shall send this statement to any

person who requests it and, for Class I permits, to the Administrator.

5. Except as provided in R18-2-303 and R18-2-402, regulations promulgated under Title IV or V of the Act, or the permitting of affected sources under the acid rain program pursuant to R18-2-333, the Director shall take final action on

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each permit application (and request for revision or renewal) within 18 months after receiving a complete application.

6.5. Priority shall be given by the Director to taking action on applications for construction or modification submitted pursuant to Title I, Parts C (Prevention of Significant Deterioration) and D (New Source Review) of the Act.

7. A proposed permit decision shall be published within nine months of receipt of a complete application and any additional information requested pursuant to subsection (E)(6) to process the application. The Director shall provide

notice of the decision as provided in R18-2-330 and any public hearing shall be scheduled as expeditiously as possible.

J. Requirement for a Permit. Except as noted under the provisions in R18-2-317 and R18-2-319, no source may operate after

the time that it is required to submit a timely and complete application, except in compliance with a permit issued pursuant to this Chapter. However, if a source under R18-2-326(B)(3) R18-2-326(A)(3) submits a timely and complete application for continued operation under a permit revision or renewal, the source’s failure to have a permit is not a violation of

this Article until the Director takes final action on the application. This protection shall cease to apply if, subsequent to the

completeness determination, the applicant fails to submit, by the deadline specified in writing by the Director, any additional information identified as being needed to process the application. This subsection does not affect a source’s obligation to obtain a permit revision before making a modification to the source.

R18-2-310.01. Reporting Requirements

A. The owner or operator of any source shall report to the Director any emissions in excess of the limits established by this

Chapter or the applicable permit. The owner or operator of any registered source may report excess emissions in accordance with this Section in order to qualify for the affirmative defense established in R18-2-310. The report shall be in two

parts as specified below:

1. Notification by telephone or facsimile within 24 hours of the time the owner or operator first learned of the occurrence of excess emissions that includes all available information from subsection (B).

2. Detailed written notification by submission of an excess emissions report within 72 hours of the notification under

subsection (1) (A)(1).

B. The excess emissions report shall contain the following information:

1. The identity of each stack or other emission point where the excess emissions occurred;

2. The magnitude of the excess emissions expressed in the units of the applicable emission limitation and the operating

data and calculations used in determining the magnitude of the excess emissions;

3. The time and duration or expected duration of the excess emissions;

4. The identity of the equipment from which the excess emissions emanated;

5. The nature and cause of the emissions;

6. The steps taken, if the excess emissions were the result of a malfunction, to remedy the malfunction and the steps

taken or planned to prevent the recurrence of the malfunctions;

7. The steps that were or are being taken to limit the excess emissions; and

8. If the source’s permit contains procedures governing source operation during periods of startup or malfunction and

the excess emissions resulted from startup or malfunction, a list of the steps taken to comply with the permit procedures.

C. In the case of continuous or recurring excess emissions, the notification requirements of this Section shall be satisfied if

the source provides the required notification after excess emissions are first detected and includes in the notification an

estimate of the time the excess emissions will continue. Excess emissions occurring after the estimated time period or

changes in the nature of the emissions as originally reported shall require additional notification pursuant to subsections

(A) and (B).

R18-2-317. Facility Changes Allowed Without Permit Revisions - Class I

A. A facility with a Class I permit may make changes that contravene an express permit term without a permit revision if all

of the following apply:

1. The changes are not modifications under any provision of Title I of the Act or under A.R.S. § 49-401.01(24);

2. The changes do not exceed the emissions allowable under the permit whether expressed therein as a rate of emissions

or in terms of total emissions;

3. The changes do not violate any applicable requirements or trigger any additional applicable requirements;

4. The changes satisfy all requirements for a minor permit revision under R18-2-319(A); and

5. The changes do not contravene federally enforceable permit terms and conditions that are monitoring (including test

methods), recordkeeping, reporting, or compliance certification requirements.; and

6. The changes do not constitute a minor NSR modification.

B. The substitution of an item of process or pollution control equipment for an identical or substantially similar item of process or pollution control equipment shall qualify as a change that does not require a permit revision, if the substitution

meets all of the requirements of subsections (A), (D), and (E).

C. Except for sources with authority to operate under general permits, permitted sources may trade increases and decreases in

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tion plan provides for the emissions trades without applying for a permit revision and based on the seven working days

notice prescribed in subsection (D). This provision is available if the permit does not provide for the emissions trading as

a minor permit revision.

D. For each change under subsections (A) through (C), a written notice by certified mail or hand delivery shall be received

by the Director and the Administrator a minimum of seven working days in advance of the change. Notifications of

changes associated with emergency conditions, such as malfunctions necessitating the replacement of equipment, may be

provided less than seven working days in advance of the change but must be provided as far in advance of the change or,

if advance notification is not practicable, as soon after the change as possible.

E. Each notification shall include:

1. When the proposed change will occur;

2. A description of the change;

3. Any change in emissions of regulated air pollutants;

4. The pollutants emitted subject to the emissions trade, if any;

5. The provisions in the implementation plan that provide for the emissions trade with which the source will comply and

any other information as may be required by the provisions in the implementation plan authorizing the trade;

6. If the emissions trading provisions of the implementation plan are invoked, then the permit requirements with which

the source will comply; and

7. Any permit term or condition that is no longer applicable as a result of the change.

F. The permit shield described in R18-2-325 shall not apply to any change made under subsections (A) through (C). Compliance with the permit requirements that the source will meet using the emissions trade shall be determined according to

requirements of the implementation plan authorizing the emissions trade.

G. Except as otherwise provided for in the permit, making a change from one alternative operating scenario to another as provided under R18-2-306(A)(11) shall not require any prior notice under this Section.

H. Notwithstanding any other part of this Section, the Director may require a permit to be revised for any change that, when

considered together with any other changes submitted by the same source under this Section over the term of the permit,

do not satisfy subsection (A).

I.H. The Director shall make available to the public monthly summaries of all notices received under this Section.

R18-2-317.01. Facility Changes that Require a Permit Revision - Class II

A. The following changes at a source with a Class II permit shall require a permit revision:

1. A change that would triggers trigger a new applicable requirement or violates violate an existing applicable requirement.

2. Establishment of, or change in, an emissions cap under R18-2-306.02;

3. A change that will require a case-by-case determination of an emission limitation or other standard, or a source-specific determination of ambient impacts, or a visibility or increment analysis;

4. A change that results in emissions that are subject to monitoring, recordkeeping or reporting under R18-2-

306(A)(3),(4), or (5) if the emissions cannot be measured or otherwise adequately quantified by monitoring, recordkeeping, or reporting requirements already in the permit;

5. A change that will authorize the burning of used oil, used oil fuel, hazardous waste, or hazardous waste fuel, or any

other fuel not currently authorized by the permit;

6. A change that requires the source to obtain a Class I permit;

7. Replacement of an item of air pollution control equipment listed in the permit with one that does not have the same or

better pollutant removal efficiency;

8. Establishment or revision of a limit under R18-2-306.01;

9. Increasing operating hours or rates of production above the permitted level; and

10. A change that relaxes monitoring, recordkeeping, or reporting requirements, except when the change results:

a. From removing equipment that results in a permanent decrease in actual emissions, if the source keeps on-site

onsite records of the change in a log that satisfies Appendix 3 of this Chapter and if the requirements that are

relaxed are present in the permit solely for the equipment that was removed; or

b. From a change in an applicable requirement.; and

11. A minor NSR modification.

B. A source with a Class II permit may make any physical change or change in the method of operation without revising the

source’s permit unless the change is specifically prohibited in the source’s permit or is a change described in subsection

(A). A change that does not require a permit revision may still be subject to requirements in R18-2-317.02.

R18-2-317.02. Procedures for Certain Changes that do not Do ot Require a Permit Revision - Class II

A. Except for a physical change or change in the method of operation at a Class II source requiring a permit revision under

R18-2-317.01, or a change subject to logging or notice requirements in subsection (B) or (C), a change at a Class II source

shall not be subject to revision, notice, or logging requirements under this Chapter.

B. Except as otherwise provided in the conditions applicable to an emissions cap created under R18-2-306.02, the following

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changes may be made if the source keeps onsite records of the changes according to Appendix 3:

1. Implementing an alternative operating scenario, including raw material changes;

2. Changing process equipment, operating procedures, or making any other physical change if the permit requires the

change to be logged;

3. Engaging in any new insignificant activity listed in the definition of insignificant activities in R18-2-101 R18-2-

101(57)(a) through (i) but not listed in the permit;

4. Replacing an item of air pollution control equipment listed in the permit with an identical (same model, different

serial number) item. The Director may require verification of efficiency of the new equipment by performance tests;

and

5. A change that results in a decrease in actual emissions if the source wants to claim credit for the decrease in determining whether the source has a net emissions increase for any purpose. The logged information shall include a description of the change that will produce the decrease in actual emissions. A decrease that has not been logged is creditable

only if the decrease is quantifiable, enforceable, and otherwise qualifies as a creditable decrease.

C. Except as provided in the conditions applicable to an emissions cap created under R18-2-306.02, the following changes

may be made if the source provides written notice to the Department in advance of the change as provided below:

1. Replacing an item of air pollution control equipment listed in the permit with one that is not identical but that is substantially similar and has the same or better pollutant removal efficiency: seven days. The Director may require verification of efficiency of the new equipment by performance tests;

2. A physical change or change in the method of operation that increases actual emissions more than 10% of the major

source threshold for any conventional pollutant but does not require a permit revision: seven days;

3. Replacing an item of air pollution control equipment listed in the permit with one that is not substantially similar but

that has the same or better efficiency: 30 days. The Director may require verification of efficiency of the new equipment by performance tests;

4. A change that would trigger an applicable requirement that already exists in the permit: 30 days unless otherwise

required by the applicable requirement;

5. A change that amounts to reconstruction of the source or an affected facility: seven days. For purposes of this subsection, reconstruction of a source or an affected facility shall be presumed if the fixed capital cost of the new components exceeds 50% of the fixed capital cost of a comparable entirely new source or affected facility and the changes to

the components have occurred over the 12 consecutive months beginning with commencement of construction; and

6. A change that will result in the emissions of a new regulated air pollutant above an applicable regulatory threshold

but that does not trigger a new applicable requirement for that source category: 30 days. For purposes of this requirement, an applicable regulatory threshold for a conventional air pollutant shall be 10% of the applicable major source

threshold for that pollutant.

D. For each change under subsection (C), the written notice shall be by certified mail or hand delivery and shall be received

by the Director the minimum amount of time in advance of the change. Notifications of changes associated with emergency conditions, such as malfunctions necessitating the replacement of equipment, may be provided with less than

required notice, but must be provided as far in advance of the change, or if advance notification is not practicable, as soon

after the change as possible. The written notice shall include:

1. When the proposed change will occur,

2. A description of the change,

3. Any change in emissions of regulated air pollutants, and

4. Any permit term or condition that is no longer applicable as a result of the change.

E. A source may implement any change in subsection (C) without the required notice by applying for a minor permit revision

under R18-2-319 and complying with R18-2-319(D)(2) and (G).

F. The permit shield described in R18-2-325 shall not apply to any change made under this Section, other than implementation of an alternate operating scenario under subsection (B)(1).

G. Notwithstanding any other part of this Section, the Director may require a permit to be revised for any change that, when

considered together with any other changes submitted by the same source under this Section over the term of the permit,

constitutes a change under R18-317.01(A).

H. If a source change is described under both subsections (B) and (C), the source shall comply with subsection (C). If a

source change is described under both subsections subsection (C) and R18-2-317.01(B), the source shall comply with

R18-2-317.01(B).

I. A copy of all logs required under subsection (B) shall be filed with the Director within 30 days after each anniversary of

the permit issue date. If no changes were made at the source requiring logging, a statement to that effect shall be filed

instead.

R18-2-319. Minor Permit Revisions

A. Minor permit revision procedures may be used only for those changes at a Class I source that satisfy all of the following:

1. Do not violate any applicable requirement;

2. Do not involve substantive changes to existing monitoring, reporting, or recordkeeping requirements in the permit;

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3. Do not require or change a case-by-case determination of an emission limitation or other standard, or a source-specific determination of ambient impacts, or a visibility or increment analysis;

4. Do not seek to establish or change a permit term or condition for which there is no corresponding underlying applicable requirement and that the source has assumed in order to avoid an applicable requirement to which the source

would otherwise be subject. The terms and conditions include:

a. A federally enforceable emissions cap that the source would assume to avoid classification as a modification

under any provision of Title I of the Act; and

b. An alternative emissions limit approved under regulations promulgated under the Section section 112(i)(5) of the

Act.

5. Are not modifications under any provision of Title I of the Act;

6. Are not changes in fuels not represented in the permit application or provided for in the permit;

7. The increase in the source’s potential to emit any regulated air pollutant is not significant as defined in R18-2-101 Are

not minor NSR modifications subject to R18-2-334, except that minor NSR modifications subject to R18-2-334(G)

may be processed as minor permit revisions; and

8. Are not required to be processed as a significant permit revision under R18-2-320.

B. Minor permit revision procedures shall be used for the following changes at a Class II source:

1. A change that triggers a new applicable requirement if all of the following apply:

a. For emissions units not subject to an emissions cap, the net emissions increase is less than the significant level

defined in R18-2-101(111) The change is not a minor NSR modification subject to R18-2-334, except that minor

NSR modifications subject to R18-2-334(G) may be processed as minor permit revisions;

b. A case-by-case determination of an emission limitation or other standard is not required; and

c. The change does not require the source to obtain a Class I permit;

2. Increasing operating hours or rates of production A change that increases emissions above the permitted level unless

the increase otherwise creates a condition that requires a significant permit revision;

3. A change in fuel from fuel oil or coal, to natural gas or propane, if not authorized in the permit;

4. A change that results in emissions subject to monitoring, recordkeeping, or reporting under R18-2-306(A)(3), (4), or

(5) and that cannot be measured or otherwise adequately quantified by monitoring, recordkeeping, or reporting

requirements already in the permit;

5. A decrease in the emissions permitted under an emissions cap unless the decrease requires a change in the conditions

required to enforce the cap or to ensure that emissions trades conducted under the cap are quantifiable and enforceable; and

6. Replacement of an item of air pollution control equipment listed in the permit with one that does not have the same or

better efficiency.

C. As approved by the Director, minor permit revision procedures may be used for permit revisions involving the use of economic incentives, marketable permits, emissions trading, and other similar approaches, to the extent that the minor permit

revision procedures are explicitly provided for in an applicable implementation plan or in applicable requirements promulgated by the Administrator.

D. An application for minor permit revision shall be on the standard application form contained in Appendix 1 and include

the following:

1. A description of the change, the emissions resulting from the change, and any new applicable requirements that will

apply if the change occurs;

2. For Class I sources, and any source that is making the change immediately after it files the application, the source’s

suggested draft permit;

3. Certification by a responsible official, consistent with standard permit application requirements, that the proposed

revision meets the criteria for use of minor permit revision procedures and a request that the procedures be used;

E. EPA and affected state notification. For Class I permits, within five working days of receipt of an application for a minor

permit revision, the Director shall notify the Administrator and affected states of the requested permit revision in accordance with R18-2-307.

F. The Director shall follow the following timetable for action on an application for a minor permit revision:

1.F. For Class I permits, the Director shall not issue a final permit revision until after the Administrator’s 45-day review period

or until the Administrator has notified the Director that the Administrator will not object to issuance of the permit revision, whichever is first, although the Director may approve the permit revision before that time. Within 90 days of the

Director’s receipt of an application under minor permit revision procedures, or 15 days after the end of the Administrator’s 45-day review period, whichever is later, the Director shall do one or more of the following:

a.1. Issue the permit revision as proposed,

b.2. Deny the permit revision application,

c.3. Determine that the proposed permit revision does not meet the minor permit revision criteria and should be reviewed

under the significant revision procedures, or

d.4. Revise the proposed permit revision and transmit to the Administrator the new proposed permit revision as required

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in R18-2-307.

2. Within 60 days of the Director’s receipt of an application for a revision of a Class II permit under this Section, the

Director shall do one or more of the following:

a. Issue the permit revision as proposed;

b. Deny the permit revision application;

c. Determine that the permit revision does not meet the minor permit revision criteria and should be reviewed under

the significant revision procedures; or

d. Revise and issue the proposed permit revision.

G. The source may make the change proposed in its minor permit revision application immediately after it files the application. After the a Class I source makes the a change allowed by the preceding sentence, and until the Director takes any of

the actions specified in subsection (F), the source shall comply with both the applicable requirements governing the

change and the proposed revised permit terms and conditions. During this time period, the Class I source need not comply

with the existing permit terms and conditions it seeks to modify. However, if the Class I source fails to comply with its

proposed permit terms and conditions during this time period, the existing permit terms and conditions it seeks to revise

may be enforced against it.

H. The permit shield under R18-2-325 shall not extend to minor permit revisions.

I. Notwithstanding any other part of this Section, the Director may require a permit to be revised under R18-2-320 for any

change that, when considered together with any other changes submitted by the same source under this Section or R18-2-

317.02 over the life of the permit, do not satisfy subsection (A) for Class I sources or subsection (B) for Class II sources.

J. The Director shall make available to the public monthly summaries of all applications for minor permit revisions.

R18-2-320. Significant Permit Revisions

A. For Class I sources, a significant revision shall be used for an application requesting a permit revision that does not qualify as a minor permit revision or as an administrative amendment. A significant revision that is only required because of a

change described in R18-2-319(A)(6) or (7) shall not be considered a significant permit revision under part 70 for the purposes of 40 CFR 64.5(a)(2). Every significant change in existing monitoring permit terms or conditions and every relaxation of reporting or recordkeeping permit terms or conditions shall follow significant revision procedures.

B. A source with a Class II permit shall make the following changes only after the permit is revised following the public participation requirements of R18-2-330:

1. Establishing or revising a voluntarily accepted emission limitation or standard as described by R18-2-306.01 or R18-

2-306.02, except a decrease in the limitation authorized by R18-2-319(B)(5);

2. Making any change in fuel not authorized by the permit and that is not fuel oil or coal, to natural gas or propane;

3. A change to or addition of an emissions unit not subject to an emissions cap that will result in a net emission increase

of a pollutant greater than the significance level in R18-2-101(104) A change that is a minor NSR modification subject to R18-2-334, except for a minor modification subject to R18-2-334(G);

4. A change that relaxes monitoring, recordkeeping, or reporting requirements, except when the change results from:

a. Removing equipment that results in a permanent decrease in actual emissions, if the source keeps on-site onsite

records of the change in a log that satisfies Appendix 3 of this Chapter and if the requirements that are relaxed

are present in the permit solely for the equipment that was removed; or

b. A change in an applicable requirement.

5. A change that will cause the source to violate an existing applicable requirement including the conditions establishing

an emissions cap;

6. A change that will require any of the following:

a. A case-by-case determination of an emission limitation or other standard;

b. A source-specific determination of ambient impacts, or a visibility or increment analysis; or

c. A case-by-case determination of a monitoring, recordkeeping, and reporting requirement.; or

7. A change that requires the source to obtain a Class I permit.

C. Any modification to a major source of federally listed hazardous air pollutants, and any reconstruction of a source, or a

process or production unit, under Section section 112(g) of the Act and regulations promulgated thereunder, shall follow

significant permit revision procedures and any rules adopted under A.R.S. § 49-426.03.

D. Significant permit revisions shall meet all requirements of this Article for applications, public participation, review by

affected states, and review by the Administrator that apply to permit issuance and renewal. Notwithstanding R18-2-

330(C), the Director may provide notice for changes requiring a significant permit revision solely under subsection

(B)(2), (4) or (6)(c) by posting a notice on the Department’s web site, sending e-mails to persons who have requested electronic notification of the Department’s proposed air quality permit actions and by mailing a copy of the notice as provided

in R18-2-330(C)(1).

E. When an existing source applies for a significant permit revision to revise its permit from a Class II permit to a Class I

permit, it shall submit a Class I permit application in accordance with R18-2-304. The Director shall issue the entire permit, and not just the portion being revised, in accordance with Class I permit content and issuance requirements, including

requirements for public, affected state, and EPA review, contained in R18-2-307 and R18-2-330.

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F. The Director shall process the majority of significant permit revision applications received each calendar year within nine

months of receipt of a complete permit application but in no case longer than 18 months. Applications for which the

Director undertakes accelerated processing under R18-2-326(N) shall not be included in this requirement. This subsection

(does) not change any time-frame requirements in Chapter 1.

R18-2-321. Permit Reopenings; Revocation and Reissuance; Termination

A. Reopening for Cause.

1. Each issued permit shall include provisions specifying the conditions under which the permit shall be reopened prior

to the expiration of the permit. A permit shall be reopened and revised under any of the following circumstances:

a. Additional applicable requirements under the Act become applicable to a major source with a remaining permit

term of three or more years. Such a reopening shall be completed not later than 18 months after promulgation of

the applicable requirement. No such reopening is required if the effective date of the requirement is later than the

date on which the permit is due to expire, unless the original permit or any of its terms and conditions has been

extended pursuant to R18-2-322(B). Any permit revision required pursuant to this subsection (shall) comply with

provisions in R18-2-322 for permit renewal and shall reset the five-year permit term. 

b. Additional requirements, including excess emissions requirements, become applicable to an affected source

under the acid rain program. Upon approval by the Administrator, excess emissions offset plans shall be deemed

to be incorporated into the Class I permit.

c. The Director or the Administrator determines that the permit contains a material mistake or that inaccurate statements were made in establishing the emissions standards or other terms or conditions of the permit.

d. The Director or the Administrator determines that the permit needs to be revised or revoked to assure compliance

with the applicable requirements.

2. Proceedings to reopen and issue a permit, including appeal of any final action relating to a permit reopening, shall follow the same procedures as apply to initial permit issuance and shall, except for reopenings under subsection (1)(a)

(A)(1)(a), affect only those parts of the permit for which cause to reopen exists. Such reopening shall be made as

expeditiously as practicable.

3. Reopenings under subsection (A)(1) shall not be initiated before a notice of such intent is provided to the source by

the Director at least 30 days in advance of the date that the permit is to be reopened, except that the Director may provide a shorter time period in the case of an emergency.

4. When a permit is reopened and revised pursuant to this Section, the Director may make appropriate revisions to the

permit shield established pursuant to R18-2-325.

B. Within 10 days of receipt of notice from the Administrator that cause exists to reopen a Class I permit, the Director shall

notify the source. The source shall have 30 days to respond to the Director. Within 90 days of receipt of notice from the

Administrator that cause exists to reopen a permit, or within any extension to the 90 days granted by EPA, the Director

shall forward to the Administrator and the source a proposed determination of termination, revision, or revocation and

reissuance of the permit. Within 90 days of receipt of an EPA objection to the Director’s proposal, the Director shall

resolve the objection and act on the permit.

C. The Director may issue a notice of termination of a permit or registration issued pursuant to this Chapter if:

1. The Director has reasonable cause to believe that the permit or registration was obtained by fraud or misrepresentation.

2. The person applying for the permit or registration failed to disclose a material fact required by the permit application

form or the regulation applicable to the permit or registration, of which the applicant had or should have had knowledge at the time the application was submitted.

3. The terms and conditions of the permit or registration have been or are being violated.

D. If the Director issues a notice of termination under this Section, the notice shall be served on the permittee by certified

mail, return receipt requested. The notice shall include a statement detailing the grounds for the revocation and a statement that the permittee is entitled to a hearing.

R18-2-324. Portable Sources

A. A portable source that will operate for the duration of its permit solely in one county that has established a local air pollution control program pursuant to A.R.S. § 49-479 shall obtain a permit from that county. A portable source with a county

permit shall not operate in any other county. A portable source that has a permit issued by the Director and obtains a

county permit shall request that the Director terminate the permit. Upon issuance of the county permit, the permit issued

by the Director is no longer valid.

B. A portable source which has a county permit but proposes to operate outside the that county shall obtain a permit from the

Director. A portable source that has a permit issued by a county and obtains a permit issued by the Director shall request

that the county terminate the permit. Upon issuance of a permit by the Director, the county shall terminate the county permit for that source permit is no longer valid. Before commencing operation in the new county, the source shall notify the

Director and the control officer who has jurisdiction over the geographic area in the county that includes the new location

according to subsection (D).

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C. An owner of portable source equipment which requires a permit under this Chapter shall obtain the permit prior to renting

or leasing said equipment. This permit shall be provided by the owner to the renter or lessee, and the renter or lessee shall

be bound by the permit provisions. In the event a copy of the permit is not provided to the renter or lessee, both the owner

and the lessee or renter shall be responsible for the operation of this equipment in compliance with the permit conditions

and any violations thereof.

D. A portable source may be transferred from one location to another provided that the owner or operator of such equipment

notifies the Director and any control officer who has jurisdiction over the geographic area that includes the new location

of the transfer by certified mail at least 10 working days before the transfer. The notification required under this subsection shall include:

1. A description of the equipment to be transferred including the permit number for such equipment; 

2. A description of the present location;

3. A description of the location to which the equipment is to be transferred, including the availability of all utilities, such

as water and electricity, necessary for the proper operation of all control equipment; 

4. The date on which the equipment is to be moved; and

5. The date on which operation of the equipment will begin at the new location.

E. Any permit for a portable source shall contain conditions that will assure compliance with all applicable requirements at

all authorized locations.

R18-2-327. Annual Emissions Inventory Questionnaire

A. Every source subject to a permit requirement requirements under this Chapter shall complete and submit to the Director

an annual emissions inventory questionnaire. The questionnaire is due by March 31 or 90 days after the Director makes

the inventory form available, whichever occurs later, and shall include emission information for the previous calendar

year. These requirements apply whether or not a permit has been issued and whether or not a permit application has been

filed.

B. The questionnaire shall be on a form provided by the Director and shall include the following information:

1. The source’s name, description, mailing address, contact person and contact person phone number, and physical

address and location, if different than the mailing address.

2. Process information for the source, including design capacity, operations schedule, and emissions control devices,

their description and efficiencies.

3. The actual quantity of emissions from permitted emission points and fugitive emissions as provided in the permit,

including documentation of the method of measurement, calculation, or estimation, determined pursuant to subsection (C), of the following regulated air pollutants:

a. Any single regulated air pollutant in a quantity greater than 1 ton or the amount listed for the pollutant in subsection (a) of the definition of “significant” in R18-2-101 R18-2-101(130)(a), whichever is less.

b. Any combination of regulated air pollutants in a quantity greater than 2 1/2 tons.

C. Actual quantities of emissions shall be determined using the following emission factors or data:

1. Whenever available, emissions estimates shall either be calculated from continuous emissions monitors certified pursuant to 40 CFR 75, Subpart C and referenced appendices, or data quality assured pursuant to Appendix F of 40 CFR

60.

2. When sufficient data pursuant to subsection (C)(1) is not available, emissions estimates shall be calculated from data

from source performance tests conducted pursuant to R18-2-312 in the calendar year being reported or, when not

available, conducted in the most recent calendar year representing the operating conditions of the year being reported.

3. When sufficient data pursuant to subsection (C)(1) or (C)(2) (2) is not available, emissions estimates shall be calculated using emissions factors from EPA Publication No. AP-42 “Compilation of Air Pollutant Emission Factors,” Volume I: Stationary Point and Area Sources, Fifth Edition, 1995, U.S. Environmental Protection Agency, Research

Triangle Park, NC, including Supplements A through F and all updates published through July 1, 2011 (and no future

editions). AP-42 which is incorporated by reference and is on file with the Department of Environmental Quality and

the Office of Secretary of State and. AP-42 can be obtained from the Superintendent of Documents, Government

Printing Office, 732 North Capitol Street, NW, Washington, D.C. 20402 20401, telephone (202) 783-3238 512-1800,

or by downloading the document from the EPA Technology Transfer Network, computer modem number (919) 541-

5742, setting 8-N-1, VT100, or ANSI web site for the EPA Clearinghouse for Emission Inventories and Emission

Factors.

4. When sufficient data pursuant to subsections (C)(1) through (C)(3) is not available, emissions estimates shall be calculated from material balance using engineering knowledge of process.

5. When sufficient data pursuant to subsections (C)(1) through (C)(4) (4) is not available, emissions estimates shall be

calculated by equivalent methods approved by the Director. The Director shall only approve methods that are demonstrated as accurate and reliable as the applicable method one of the methods in subsections (C)(1) through (4).

D. Actual quantities of emissions calculated under subsection (C) shall be determined on the basis of actual operating hours,

production rates, in-place process control equipment, operational process control data, and types of materials processed,

stored, or combusted.

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E. An amendment to an annual emission inventory questionnaire, containing the documentation required by subsection

(B)(3), shall be submitted to the Director by any source whenever it discovers or receives notice, within two years of the

original submittal, that incorrect or insufficient information was submitted to the Director by a previous questionnaire. If

the incorrect or insufficient information resulted in an incorrect annual emissions fee, the Director shall require that additional payment be made or shall apply an amount as a credit to a future annual emissions fee. The submittal of an amendment under this subsection (shall) shall not subject the owner or operator to an enforcement action or a civil or criminal

penalty if the original submittal of incorrect or insufficient information was due to reasonable cause and not wilful willful

neglect.

F. The Director may require submittal of supplemental emissions inventory questionnaires for air contaminants pursuant to

A.R.S. §§ 49-422, 49-424, and 49-426.03 through 49-426.08.

R18-2-330. Public Participation

A. The Director shall provide public notice, an opportunity for public comment, and an opportunity for a hearing before taking any of the following actions:

1. A permit issuance or renewal of a permit,

2. A significant permit revision,

3. Revocation and reissuance or reopening of a permit,

4. Any conditional orders pursuant to R18-2-328,

5. Granting a variance from a general permit under R18-2-507 and R18-2-1705.

B. The Director shall provide public notice of receipt of complete applications for permits or permit revisions subject to Article 4 of this Chapter to construct or make a major modification to major sources by publishing a notice in a newspaper of

general circulation in the county where the source is or will be located.

C. The Director shall provide the notice required pursuant to subsection (A) as follows:

1. The Director shall publish the notice once each week for two consecutive weeks in two newspapers of general circulation in the county where the source is or will be located. 

2. The Director shall mail a copy of the notice to persons on a mailing list developed by the Director consisting of those

persons who have requested in writing to be placed on such a mailing list.

D. The notice required by subsection (C) shall include the following:

1. Identification of the affected facility;

2. Name and address of the permittee or applicant;

3. Name and address of the permitting authority processing the permit action;

4. The activity or activities involved in the permit action;

5. The emissions change involved in any permit revisions;

6. The air contaminants to be emitted;

7. If applicable, that a notice of confidentiality has been filed under R18-2-305;

8. If applicable, that the source has submitted a risk management analysis under R18-2-1708;

9. A statement that any person may submit written comments, or a written request for a public hearing, or both, on the

proposed permit action, along with the deadline for such requests or comments;

10. The name, address, and telephone number of a person from the Department from whom additional information may

be obtained;

11. Locations where copies of the permit or permit revision application, the proposed permit, and all other materials

available to the Director that are relevant to the permit decision may be reviewed, including the closest Department

office, and the times at which they shall be available for public inspection.

12. The Director shall include a statement in the public notice if the permit or permit revision would result in the generation of emission reduction credits under R18-2-1204, or the utilization of emission reduction credits under R18-2-

1206.

E. The Director shall hold a public hearing to receive comments on petitions for conditional orders which would vary from

requirements of the applicable implementation plan. For all other actions involving a proposed permit, the Director shall

hold a public hearing only upon written request. If a public hearing is requested, the Director shall schedule the hearing

and publish notice as described in A.R.S. § 49-444 and subsection (D). The Director shall give notice of any public hearing at least 30 days in advance of the hearing.

F. At the time the Director publishes the first notice under subsection (C)(1), the applicant shall post a notice containing the

information required in subsection (D) at the site where the source is or may be located. Consistent with federal, state, and

local law, the posting shall be prominently placed at a location under the applicant’s legal control, adjacent to the nearest

public roadway, and visible to the public using the public roadway. If a public hearing is to be held, the applicant shall

place an additional posting providing notice of the hearing. Any posting shall be maintained until the public comment

period is closed.

G. The Director shall provide at least 30 days from the date of its first notice for public comment to receive comments and

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mitted to EPA, in the case of a Class I permit, or a final decision is made, in the case of a Class II permit, the record and

copies of the Director’s responses shall be made available to the applicant and all commenters.

R18-2-334. Minor ew Source Review

A. Applicability.

1. Except as provided in subsection (A)(4), this Section shall apply to the following activities:

a. Construction of any new Class I or Class II source, including the construction of any source requiring a Class II

permit under R18-2-302.01(C)(4); or

b. Any minor NSR modification to a Class I or Class II source.

2. This Section shall apply to a regulated minor NSR pollutant emitted by a new stationary source, if the source will

have the potential to emit that pollutant at an amount equal to or greater than the permitting exemption threshold.

3. This Section shall apply to an increase in emissions of a regulated minor NSR pollutant from a minor NSR modification, if the modification would increase the source’s potential to emit that pollutant by an amount equal to or greater

than the permitting exemption threshold.

4. This Section shall not apply to the emissions of a pollutant from any of the activities identified in this subsection, if

the emissions of that pollutant are subject to Article 4 of this Chapter.

B. No person shall begin actual construction of a new stationary source, or minor NSR modification, subject to this Section

without first obtaining a permit, a permit revision, a proposed final permit, or a proposed final permit revision from the

Director in accordance with R18-2-304.

C. The Director shall not issue a proposed final Class I permit or permit revision or a Class II permit or permit revision subject to this Section to a person proposing to construct a new source or make a minor NSR modification unless the source

or modification meets one of the following conditions for each regulated minor NSR pollutant subject to this section:

1. The owner or operator elects to implement RACT.

a. In the case of a new source, the owner or operator shall implement RACT for each emissions unit that has the

potential to emit a regulated minor NSR pollutant in an amount equal to or greater than 20% of the permitting

exemption threshold.

b. In the case of a minor NSR modification, the owner or operator shall implement RACT for each emissions unit

that will experience an increase in the potential to emit a regulated minor NSR pollutant equal to or greater than

20% of the permitting exemption threshold.

c. When it is technically feasible and otherwise consistent with the definition of RACT to apply the same devices,

systems, process modifications, work practices or other apparatus or techniques to a group of emissions units,

that group of emissions units shall be treated as a single emissions unit for purposes of subsections (C)(1)(a) and

(b). The following are examples of situations to which this subsection may apply:

i. Emissions from a group of emissions units can be vented to a single control device.

ii. A low-VOC coating can be used in several spray-painting booths.

2. An ambient air quality assessment demonstrates that emissions from the source or minor NSR modification will not

interfere with attainment or maintenance of a standard imposed in Article 2 of this Chapter.

a. An owner or operator may elect to have the Director perform a SCREEN model of its emissions. If the results of

the SCREEN model indicate that the source or minor NSR modification will interfere with attainment or maintenance of a standard imposed in Article 2 of this Chapter, the owner or operator may perform a more refined

model to make the demonstration required by this subsection.

b. The requirements of this subsection shall be satisfied, if the results of the SCREEN or more refined modeling

conducted pursuant to subsection (B)(2)(a) demonstrate either of the following:

i. Ambient concentrations resulting from emissions from the source or modification combined with existing

concentrations of regulated minor NSR pollutants will not cause or exacerbate the violation of a standard

imposed in Article 2 of this Chapter.

ii. Emissions from the source or minor modification will have an ambient impact below the significance levels

as defined in R18-2-401.

c. The assessment required by this subsection shall take into account any limitations, controls or emissions

decreases that are or will be enforceable in the permit or permit revision for the source.

D. RACT Determinations.

1. Except as otherwise provided in this subsection, the Director shall determine RACT on the basis of a case-by-case

analysis performed by the permit applicant of the emission reduction methods available for each emission unit subject

to the RACT requirement under subsection (C)(1).

2. The Director shall accept a requirement proposed by a permit applicant as RACT under subsection (C)(1) if it complies with the most recently adopted of the following guidelines or standards in effect at the time of the application:

a. A control technique guideline issued by the Administrator under section 108(f)(1) of the Act.

b. An emissions standard established or revised by the Administrator for the same type of source under section 111

or 112 of the Act after November 15, 1990.

c. An applicable requirement of this Chapter or of air quality control regulations adopted by a County under A.R.S.

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§ 49-479 that has been specifically identified as constituting RACT.

d. A RACT standard imposed on the same type of source by a general permit.

e. A RACT standard imposed on the same type of source under this Section no more than 10 years before submission of the application by the permit applicant. To facilitate identification of previously imposed RACT standards, the Director shall establish an online database of RACT determinations made under this Section.

E. Notwithstanding an election to adopt RACT under subsection (C)(1), a permit applicant subject to this Section shall conduct an ambient air quality impact assessment under subsection (C)(2) upon the Director’s request. The Director shall

make such a request, if there is reason to believe that a source or minor NSR modification could interfere with attainment

or maintenance of a standard imposed in Article 2 of this Chapter. In making that determination, the Director shall take

into consideration:

1. The source’s emission rates.

2. The location of emission units within the facility and their proximity to the ambient air.

3. The terrain in which the source is or will be located.

4. The source type.

5. The location and emissions of nearby sources.

6. Background concentrations of regulated minor NSR pollutants.

F. The Director shall deny an application for a Class I permit or permit revision or a Class II permit or permit revision subject to this Section, if an assessment conducted pursuant to subsection (C)(2) demonstrates that the source or modification

will interfere with attainment or maintenance of a standard imposed in Article 2 of this Chapter.

G. An application for a permit or permit revision subject to this Section may be processed as a minor permit revision if one of

the following conditions is satisfied for each pollutant subject to subsection (C):

1. A RACT standard is imposed under subsection (D)(2) on each emissions unit that requires such a standard under subsection (C)(1).

2. The results of the SCREEN model for a regulated minor NSR pollutant show expected concentrations, including

background concentrations, that are less than 75% of the applicable standard imposed in Article 2 of this Chapter.

H. A copy of the notice required by R18-2-330 for permits or significant permit revisions subject to this Section must also be

sent to the Administrator through the appropriate regional office, and to all other state and local air pollution control agencies having jurisdiction in the region in which the source subject to the permit or permit revision will be located. The

notice also must be sent to any other agency in the region having responsibility for implementing the procedures required

under this subpart.

I. All modeling required pursuant to this Section shall be conducted in accordance with 40 CFR 51, Appendix W.

J. The Director shall specify those conditions in the permit that are implemented pursuant to this Section. The specified conditions shall be included in subsequent permit renewals unless modified pursuant to this Section or Article 4 of this Chapter.

K. The issuance of a permit or permit revision under this Section shall not relieve the owner or operator of the responsibility

to comply fully with applicable provisions of the SIP and any other requirements under local, state, or federal law.

L. Delayed Effective Date. This Section shall take effect on the effective date of the Administrator’s action approving it as

part of the state implementation plan.

ARTICLE 4. PERMIT REQUIREMETS FOR EW MAJOR SOURCES AD MAJOR MODIFICATIOS TO 

EXISTIG MAJOR SOURCES

R18-2-401. Definitions

In addition to The following definitions the definitions contained in Article 1 of this Chapter and A.R.S. § 49-401.01, the following definitions apply to this Article:

1. “Adverse impact on visibility” means visibility impairment that interferes with the management, protection, preservation, or enjoyment of the visitor’s visual experience of a Class I area, as determined according to R18-2-410.

2. “Baseline actual emissions” means the rate of emissions, in tons per year, of a regulated NSR pollutant, as determined

in accordance with subsections (2)(a) through (c).

a. For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons

per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the

owner or operator within the five-year period immediately preceding when the owner or operator begins actual

construction of the project. The Director shall allow the use of a different time period upon a determination that it

is more representative of normal source operation.

i. The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with

startups, shutdowns, and malfunctions.

ii. The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while

the source was operating above any emission limitation that was legally enforceable during the consecutive

24-month period.

iii. For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24-

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month period must be used to determine the baseline actual emissions for the emissions units being changed.

A different consecutive 24-month period can be used for each regulated NSR pollutant.

iv. The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by subsection (2)(a)(ii).

b. For any existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions

means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive

24-month period selected by the owner or operator within the 10-year period immediately preceding either the

date the owner or operator begins actual construction of the project, or the date a complete permit application is

received by the Administrator for a permit required under 40 CFR 52.21 or by the Director for a permit required

under the state implementation plan, whichever is earlier, except that the 10-year period shall not include any

period earlier than November 15, 1990.

i. The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with

startups, shutdowns, and malfunctions.

ii. The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while

the source was operating above any emission limitation that was legally enforceable during the consecutive

24-month period. This provision applies to excess emissions associated with a malfunction.

iii. The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major source must currently comply, had such major source been required to

comply with such limitations during the consecutive 24-month period. However, if an emission limitation is

part of a maximum achievable control technology standard that the Administrator proposed or promulgated

under 40 CFR 63, the baseline actual emissions need only be adjusted if the state of Arizona has taken credit

for such emissions reductions in an attainment demonstration or maintenance plan submitted to the Administrator pursuant to section 110(a)(1) of the Act.

iv. For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24-

month period must be used to determine the baseline actual emissions for all existing emissions units

affected by the project. A different consecutive 24-month period may be used for each regulated NSR pollutant.

v. The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by subsection (2)(b)(ii) or (iii).

c. For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that

will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other

purposes, shall equal the unit’s potential to emit.

d. For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility

steam generating units in accordance with the procedures in subsection (2)(a), for other existing emissions units

in accordance with the procedures contained in subsection (2)(b), and for new emissions units in accordance with

the procedures contained in subsection (2)(c).

3. “Basic design parameter” means:

a. Except as provided in subsection (3)(c), for a process unit at a steam electric generating facility, the owner or

operator may select as its basic design parameters either maximum hourly heat input and maximum hourly fuel

consumption rate or maximum hourly electric output rate and maximum steam flow rate. When establishing fuel

consumption specifications in terms of weight or volume, the minimum fuel quality based on Btu content shall

be used for determining the basic design parameters for a coal-fired electric utility steam generating unit.

b. Except as provided in subsection (3)(c), the basic design parameters for any process unit that is not at a steam

electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum

rate of product output. Combustion process units will typically use maximum rate of fuel input. For sources having multiple end products and raw materials, the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter.

c. If the owner or operator believes the basic design parameters in subsections (3)(a) and (b) are not appropriate for

a specific industry or type of process unit, the owner or operator may propose to the Director an alternative basic

design parameters for the source’s process unit. If the Director approves of the use of an alternative basic design

parameters, the Director shall issue a permit that is legally enforceable that records such basic design parameters

and requires the owner or operator to comply with such parameters.

d. The owner or operator shall use credible information, such as results of historic maximum capability tests, design

information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design

parameters specified in subsections (3)(a) and (b).

e. If design information is not available for a process unit, then the owner or operator shall determine the process

unit’s basic design parameters using the maximum value achieved by the process unit in the five-year period

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immediately preceding the planned activity.

f. Efficiency of a process unit is not a basic design parameter.

g. The replacement activity shall not cause the process unit to exceed any emission limitation, or operational limitation that has the effect of constraining emissions, that applies to the process unit and that is legally enforceable.

2. “Categorical sources” means the following classes of sources:

a. Coal cleaning plants with thermal dryers;

b. Kraft pulp mills;

c. Portland cement plants;

d. Primary zinc smelters;

e. Iron and steel mills;

f. Primary aluminum ore reduction plants;

g. Primary copper smelters;

h. Municipal incinerators capable of charging more than 50 tons of refuse per day;

i. Hydrofluoric, sulfuric, or nitric acid plants;

j. Petroleum refineries;

k. Lime plants;

l. Phosphate rock processing plants;

m. Coke oven batteries;

n. Sulfur recovery plants;

o. Carbon black plants using the furnace process;

p. Primary lead smelters;

q. Fuel conversion plants;

r. Sintering plants;

s. Secondary metal production plants;

t. Chemical process plants;

u. Fossil-fuel boilers, combinations thereof, totaling more than 250 million Btu’s per hour heat input;

v. Petroleum storage and transfer units with a total storage capacity more than 300,000 barrels;

w. Taconite preprocessing plants;

x. Glass fiber processing plants;

y. Charcoal production plants;

z. Fossil-fuel-fired steam electric plants and combined cycle gas turbines of more than 250 million Btu’s per hour

heat input.

3.4. “Complete” means, in reference to an application for a permit or permit revision, that the application contains all the

information necessary for processing the application.

4.5. “Dispersion technique” means any technique that attempts to affect the concentration of a pollutant in the ambient air

by any of the following:

a. Using that portion of a stack that exceeds good engineering practice stack height;

b. Varying the rate of emission of a pollutant according to atmospheric conditions or ambient concentrations of that

pollutant; or

c. Increasing final exhaust gas plume rise by manipulating source process parameters, exhaust gas parameters,

stack parameters, or combining exhaust gases from several existing stacks into one stack; or other selective handling of exhaust gas streams that increases the exhaust gas plume rise. This shall not include any of the following:

i. The reheating of a gas stream, following use of a pollution control system, for the purpose of returning the

gas to the temperature at which it was originally discharged from the facility generating the gas stream.

ii. The merging of exhaust gas streams under any of the following conditions:

(1) The source owner or operator demonstrates that the facility was originally designed and constructed

with the merged gas streams;

(2) After July 18, 1985, the merging is part of a change in operation at the facility that includes the installation of pollution controls and is accompanied by a net reduction in the allowable emissions of a pollutant, applying only to the emission limitation for that pollutant; or

(3) Before July 8, 1985, the merging was part of a change in operation at the facility that included the installation of emissions control equipment or was carried out for sound economic or engineering reasons.

Where there was an increase in the emission limitation or, in the event that no emission limitation was

in existence prior to the merging, an increase in the quantity of pollutants actually emitted prior to the

merging, the Department shall presume that merging was significantly motivated by an intent to gain

emissions credit for greater dispersion. Absent a demonstration by the source owner or operator that

merging was not significantly motivated by such intent, the Department shall deny credit for the effects

of the merging in calculating the allowable emissions for the source.

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iii. Smoke management in agricultural or silvicultural prescribed burning programs.

iv. Episodic restrictions on residential woodburning and open burning.

v. Techniques that increase final exhaust gas plume rise if the resulting allowable emissions of sulfur dioxide

from the facility do not exceed 5,000 tons per year.

6. “Existing emissions unit” is any emissions unit that is currently in existence and that is not a new emissions unit. A

replacement unit is an existing emissions unit.

5.7. “High terrain” means any area having an elevation of 900 feet or more above the base of the stack of a source.

6.8. “Innovative control technology” means any system of air pollution control that has not been adequately demonstrated

in practice but would have a substantial likelihood of achieving greater continuous emissions reduction than any control system in current practice, or of achieving at least comparable reductions at lower cost in terms of energy, economics, or nonair quality environmental impacts.

7.9. “Low terrain” means any area other than high terrain.

8.10. “Lowest achievable emission rate” (LAER) means, for any source, the more stringent rate of emissions based on one

of the following: 

a. The most stringent emissions limitation that is contained in the any implementation plan approved or promulgated under sections 110 or 172 of the Act SIP of any state for the class or category of stationary source, unless

the owner or operator of the proposed stationary source demonstrates that the limitations are limitation is not

achievable; or,

b. The most stringent emissions limitation that is achieved in practice by the class or category of stationary source.

This limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within the stationary source. The application of this term shall not permit a proposed new or

modified stationary source to emit any pollutant in excess of the amount allowable under applicable standards of

performance in Articles 9 and 11 of this Chapter.

c. For purposes of this definition only, the term “any state” means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa and includes the Commonwealth of the

Northern Mariana Islands.

9.11. “Major source” means:

a. Any stationary source located in a nonattainment area that emits, or has the potential to emit, 100 tons per year or

more of any conventional air regulated NSR pollutant, except as follows that the following thresholds shall apply

in areas subject to Subpart 2, Subpart 3 or Subpart 4 of Part D, Title I of the Act:

b. Any stationary source located in an attainment or unclassifiable area that emits, or has the potential to emit, 100

tons per year or more of any conventional air pollutant regulated NSR pollutant if the source is classified as a

Categorical Source, or 250 tons per year or more of any pollutant subject to regulation under the Act regulated

NSR pollutant if the source is not classified as a Categorical Source;

c. Any change to a minor source, except for VOC or NOx emission increases at minor sources in serious or severe

ozone nonattainment areas, that would increase its emissions to the qualifying levels in subsections (a) or (b);

d. Any change in VOC or NOx at a minor source in serious or severe ozone nonattainment areas that would be “significant” under R18-2-405(B) and that would increase its emissions to the qualifying levels in subsection (a);

e.c. Any stationary source that emits, or has the potential to emit, five or more tons of lead per year;

f. Any source classified as major undergoing modification that meets the definition of reconstruction;

g.d. A major source that is major for VOC or nitrogen oxides shall be considered major for ozone; or

h. A major source that is major for oxides of nitrogen shall be major for ozone in nonattainment areas classified as

Pollutant Emitted Nonattainment

Pollutant and 

Classification

Quantity Threshold

tons/year or more

Carbon Monoxide (CO) CO, Serious, with stationary sources as more

than 25% of source inventory if stationary

sources contribute significantly to CO levels in

the area as determined under rules issued by the

Administrator

50 

Volatile Organic

Compounds (VOC) VOC

VOC

PM10

NOx

NOx

or

Ozone, Serious

Ozone, Severe

PM10, Serious

Ozone, Serious

Ozone, Severe

50

25

70

50

25

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marginal, moderate, serious, or severe.

e. The fugitive emissions of a stationary source shall not be included in determining for any of the purposes of this

Section whether it is a major stationary source, unless the source belongs to a section 302(j) category.

12. “New emissions unit” means any emissions unit which is (or will be) newly constructed and which has existed for

less than two years from the date such emissions unit first operated.

13. “Plantwide applicability limitation” or “PAL” means an emission limitation that is based on the baseline actual emissions of all emissions units at the stationary source that emit or have the potential to emit the PAL pollutant, expressed

in tons per year, for a pollutant at a major source, that is enforceable as a practical matter and established source-wide

in accordance with this Section.

14. “PAL allowable emissions” means “allowable emissions” as defined in R18-2-101, except that the allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit’s potential to emit.

15. PAL effective date generally means the date of issuance of the PAL permit. However, the PAL effective date for an

increased PAL is the date any emissions unit that is part of the PAL major modification becomes operational and

begins to emit the PAL pollutant.

16. “PAL effective period” means the period beginning with the PAL effective date and ending 10 years later.

17. “PAL major modification” means any physical change in or change in the method of operation of the PAL source that

causes it to emit the PAL pollutant at a level equal to or greater than the PAL.

18. “PAL permit” means the permit issued by the Director that establishes a PAL for a major source.

19. “PAL pollutant” means the pollutant for which a PAL is established at a major source.

20. “Projected actual emissions” means:

a. The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated

NSR pollutant during any 12-month period in the 60 calendar months following the date the unit resumes regular

operation after the project, or in any 12-month period in the 120 calendar months following that date if the

project involves increasing the design capacity or potential to emit of any emissions unit for that regulated NSR

pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major source.

b. In determining the projected actual emissions before beginning actual construction, the owner or operator of the

major source:

i. Shall consider all relevant information, including but not limited to, historical operational data, the company’s own representations, the company’s expected business activity and the company’s highest projections

of business activity, the company’s filings with the county, state or federal regulatory authorities, and compliance plans under these regulations; and

ii. Shall include fugitive emissions to the extent quantifiable;

iii. Shall include emissions associated with startups and shutdowns, except emissions from a shutdown associated with a malfunction; and

iv. Shall exclude, only for calculating any increase in emissions that results from the particular project, that portion of the unit’s emissions following the project that an existing unit could have accommodated during the

consecutive 24-month period used to establish the baseline actual emissions and that are also unrelated to the

particular project, including any increased utilization due to product demand growth; or

c. In lieu of using the method set out subsections (20)(b)(i) through (iv), the owner or operator may elect to use the

emissions unit’s potential to emit, in tons per year.

10.21. “Reconstruction” of sources located in nonattainment areas shall be presumed to have taken place if the fixed capital cost of the new components exceeds 50% of the fixed capital cost of a comparable entirely new stationary source,

as determined in accordance with the provisions of 40 CFR 60.15(f)(1) through (3).

22. “Replacement unit” means an emissions unit for which all the criteria listed in subsections (22)(a) through (d) are

met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that is

replaced.

a. The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the emissions unit completely takes the place of an existing emissions unit.

b. The emissions unit is identical to or functionally equivalent to the replaced emissions unit.

c. The replacement does not alter the basic design parameters of the process unit.

d. The replaced emissions unit is permanently removed from the major source, otherwise permanently disabled, or

permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions

unit is brought back into operation, it shall constitute a new emissions unit.

11.23. “Resource recovery project” means any facility at which solid waste is processed for the purpose of extracting,

converting to energy, or otherwise separating and preparing solid waste for reuse. Only energy conversion facilities

that utilize solid waste that provides more than 50% of the heat input shall be considered a resource recovery project

under this Article.

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24. “Significant emissions unit” means an emissions unit that emits or has the potential to emit a PAL pollutant in an

amount that is equal to or greater than the significant level for that PAL pollutant, but less than the amount that would

qualify the unit as a major emissions unit.

12.25. “Significance levels” means the following ambient concentrations for the enumerated pollutants:

26. “Small emissions unit” means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount

less than the significant level for that PAL pollutant.

R18-2-402. General

A. The preconstruction review requirements of this Article shall apply to the construction of any new major source or any

project at an existing major source.

B. The requirements of R18-2-403 through R18-2-410 apply to the construction of a major source or a major modification of

any existing stationary source, except as this Article otherwise provides.

A.C. No person shall commence begin actual construction of a new major source or a the major modification of a source subject to the requirements of R18-2-403 through R18-2-410 without first obtaining a proposed final permit or a permit revision from the Director, pursuant to R18-2-307(A)(2), stating that the major source or major modification shall meet those

requirements.

D. The requirements of this Article apply to projects at major sources in accordance with the following principles.

1. Except as otherwise provided in subsection (E), a project is a major modification for a regulated NSR pollutant if it

causes both a significant emissions increase and a significant net emissions increase. The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase,

then the project is a major modification only if it also results in a significant net emissions increase.

2. The procedure for calculating before beginning actual construction whether a significant emissions increase will

occur depends upon the types of emissions units being modified as set forth in subsections (D)(3) through (6). The

procedure for calculating before beginning actual construction whether a significant net emissions increase will occur

at the major source is set forth in the definition of net emissions increase in R18-2-101. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase.

3. Actual-to-projected-actual applicability test for projects that only involve existing emissions units. A significant

emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions, for each existing emissions unit, equals or exceeds the significant amount for that pollutant.

4. Actual-to-potential applicability test for projects that only involve new emissions units. A significant emissions

increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the potential to emit

from each new emissions unit following completion of the project and the baseline actual emissions of these units

before the project equals or exceeds the significant amount for that pollutant.

5. [Reserved.]

6. Hybrid applicability test for projects that involve both new emissions units and existing emissions units. A significant

emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each

emissions unit, using the method specified in subsection (D)(4), as applicable with respect to each emissions unit,

equals or exceeds the significant amount for that pollutant.

E. Any major source with a PAL for a regulated NSR pollutant shall comply with R18-2-412.

F. This subsection applies with respect to any regulated NSR pollutant emitted from projects at existing emissions units at a

Averaging Time 

Pollutant Annual 24-Hour 8-Hour 3-Hour 1-Hour

SO21 μg/m35 μg/m325 μg/m3

NO21 μg/m3

CO 0.5 mg/m32 μg/m3

 mg/m3

PM10 1 μg/m35 μg/m3

PM2.5 Class I area 0.06 μg/m30.07 μg/m3

PM2.5 Class II area 0.3 μg/m31.2 μg/m3

PM2.5 Class III area 0.3 μg/m31.2 μg/m3

Except for the annual pollutant concentrations, the Department shall deem that exceedance of significance levels

has occurred when the ambient concentration of the above pollutant is exceeded more than once per year at any

one location. If the concentration occurs at a specific location and at a time when Arizona ambient air quality standards for the pollutant are not violated, the significance level does not apply.

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major stationary source (other than projects at a source with a PAL) in circumstances where there is a reasonable possibility, within the meaning of subsection (F)(6) of this Section, that a project that is not a part of a major modification may

result in a significant emissions increase of such pollutant and the owner or operator elects to use the method specified in

R18-2-401(20)(b)(i) through (iv) of the definition of projected actual emissions for calculating projected actual emissions.

1. Before beginning actual construction of the project, the owner or operator shall document and maintain a record of

the following information:

a. A description of the project;

b. Identification of the emissions unit(s) with emissions of a regulated NSR pollutant that could be affected by the

project;

c. A description of the applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under R18-2-401(20)(b)(iii) of the definition of projected actual emissions and an explanation for

why such amount was excluded; and

d. Any netting calculations, if applicable.

2. If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the

owner or operator shall provide a copy of the information set out subsection (F)(1) to the Director. Nothing in this

subsection shall be construed to require the owner or operator of such a unit to obtain any determination from the

Director before beginning actual construction.

3. The owner or operator shall monitor the emissions of any regulated NSR pollutant that could increase as a result of

the project and that is emitted by any emissions unit identified in subsection (F)(1)(b); and calculate and maintain a

record of the annual emissions, in tons per year on a calendar year basis, for a period of five years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after

the change if the project increases the design capacity or potential to emit of that regulated NSR pollutant at such

emissions unit. For purposes of this subsection, fugitive emissions (to the extent quantifiable) shall be monitored if

the emissions unit is part of a section 302(j) category or if the emissions unit is located at a major stationary source

that belongs to a section 302(j) category.

4. The owner or operator shall submit a report to the Director if for a calendar year the annual emissions, in tons per

year, from the project identified in subsection (F)(1)(a) exceed the sum of the baseline actual emissions, as documented and maintained under subsection (F)(1)(c), by a significant amount for that regulated NSR pollutant, and if

the emissions differ from the preconstruction projection as documented and maintained under subsection (F)(1)(c).

The owner or operator shall submit the report to the Director within 60 days after the end of the calendar year. The

report shall contain the following:

a. The name, address and telephone number of the major source;

b. The annual emissions as calculated pursuant to subsection (F)(3); and

c. Any other information that the owner or operator wishes to include in the report, such as an explanation as to

why the emissions differ from the preconstruction projection.

5. Notwithstanding subsection (F)(4), if any existing emissions unit identified in subsection (F)(1)(b) is an electric utility steam generating unit, the owner or operator shall submit a report to the Director within 60 days after the end of

each calendar year during which the owner or operator must generate records under subsection (F)(3). The report

shall document the unit’s post-project annual emissions during the calendar year that preceded submission of the

report.

6. A “reasonable possibility” under subsection (F) occurs when the owner or operator calculates the project to result in

one of the following:

a. A projected actual emissions increase of at least 50% of the amount that is a significant emissions increase (without reference to the amount that is a significant net emissions increase) for the regulated NSR pollutant.

b. A projected actual emissions increase that, added to the amount of emissions excluded under subsection R18-2-

401(20)(b)(iv) of the definition of projected actual emissions, sums to at least 50% of the amount that is a significant emissions increase (without reference to the amount that is a significant net emissions increase) for the regulated NSR pollutant. For a project for which a reasonable possibility occurs only within the meaning of

subsection (F)(6)(b), and not also within the meaning of subsection (F)(6)(a), subsections (F)(2) through (5) do

not apply to the project.

B.G. An application for a permit or permit revision under this Article, other than a PAL permit pursuant to R18-2-412, shall

not be considered complete unless the application demonstrates that:

1. The requirements in subsection (C) (H) are met;

2. The more stringent of the applicable new source performance standards in Article 9 of this Chapter or the existing

source performance standards in Article 7 of this Chapter are applied to the proposed new major source or major

modification of a major source;

3. The visibility requirements contained in R18-2-410 are satisfied;

4. All applicable provisions of Article 3 of this Chapter are met;

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5. The new major source or major modification will be in compliance with whatever emission limitation, design, equipment, work practice or operational standard, or combination thereof is applicable to the source or modification. The

degree of emission limitation required for control of any pollutant under this Article shall not be affected in any manner by:

a. Stack height in excess of GEP stack height except as provided in R18-2-332; or

b. Any other dispersion technique, unless implemented prior to December 31, 1970;

6. The new major source or major modification will not exceed the applicable standards for hazardous air pollutants

contained in this Chapter;

7. The new major source or major modification will not exceed the limitations, if applicable, on emission from nonpoint

sources contained in Article 6 of this Chapter;

8. A stationary source that will emit five or more tons of lead per year will not violate the ambient air quality standards

for lead contained in R18-2-206;

9. The new major source or major modification will not have an adverse impact on visibility, as determined according to

R18-2-410.

C.H. Except for assessing air quality impacts within Class I areas, the air impact analysis required to be conducted as part of a

permit application shall initially consider only the geographical area located within a 50 kilometer radius from the point of

greatest emissions for the new major source or major modification. The Director, on his own initiative or upon receipt of

written notice from any person shall have the right at any time to request an enlargement of the geographical area for

which an air quality impact analysis is to be performed by giving the person applying for the permit or permit revision

written notice thereof, specifying the enlarged radius to be so considered. In performing an air impact analysis for any

geographical area with a radius of more than 50 kilometers, the person applying for the permit or permit revision may use

monitoring or modeling data obtained from major sources having comparable emissions or having emissions which are

capable of being accurately used in such demonstration, and which are subjected to terrain and atmospheric stability conditions which are comparable or which may be extrapolated with reasonable accuracy for use in such demonstration.

D.I. Unless the requirement has been satisfied pursuant to Article 3 of this Chapter, the Director shall comply with following

requirements:

1. Within 60 days after receipt of an application for a permit or permit revision subject to this Article, or any addition to

such application, the Director shall advise the applicant of any deficiency. The date of receipt of the application shall

be, for the purpose of this Section, the date on which the Director received all required information. The permit application shall not be deemed complete if the Director fails to meet the requirements of this subsection.

2. A copy of any notice required by R18-2-330 shall be sent to the permit applicant, to the Administrator, and to the following officials and agencies having cognizance over the location where the proposed major source or major modification would occur:

a. The air pollution control officer, if one exists, for the county wherein the proposed or existing source that is the

subject of the permit or permit revision application is located;

b. The county manager for the county wherein the proposed or existing source that is the subject of the permit or

permit revision application is located;

c. The city or town managers of the city or town which contains, and any city or town the boundaries of which are

within 5 miles of, the location of the proposed or existing source that is the subject of the permit or permit revision application;

d. Any regional land use planning agency with authority for land use planning in the area where the proposed or

existing source that is the subject of the permit or permit revision application is located; and

e. Any state, Federal Land Manager, or Indian governing body whose lands may be affected by emissions from the

proposed source or modification.

3. The Director shall take final action on the application within one year of the proper filing of the completed application. The Director shall notify the applicant in writing of his approval or denial.

4. The Director shall terminate The authority to construct and operate a new major source or major modification under a

permit or permit revision issued under this Article shall terminate if the owner or operator does not commence the

proposed construction or major modification is not begun within 18 months of issuance or if, if during the construction or major modification, the owner or operator suspends work is suspended for more than 18 months. The Director

may extend the 18-month period upon a satisfactory showing that an extension is justified. This provision does not

apply to the time period between construction of the approved phases of a phased construction project; each phase

must commence construction within 18 months of the projected and approved commencement date.

R18-2-403. Permits for Sources Located in onattainment Areas

A. Except as provided in subsections (C) through (G) below, no permit or permit revision shall be issued under this Article to

a person proposing to construct a new major source or make a major modification that is major for the pollutant for which

the area is designated nonattainment to a source located in any nonattainment area for the pollutant(s) for which the source

is classified as a major source or the modification is classified as a major modification unless:

1. The person demonstrates that the new major source or the major modification will meet an emission limitation which

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is the lowest achievable emission rate (LAER) for that source for that specific pollutant(s) regulated NSR pollutant.

In determining lowest achievable emission rate for a reconstructed stationary source, the provisions of 40 CFR

60.15(f)(4) shall be taken into account in assessing whether a new source performance standard is applicable to such

stationary source.

2. The person demonstrates that all existing major sources owned or operated by that person (or any entity controlling,

controlled by, or under common control with that person) in the state are in compliance with, or on a schedule of compliance for, all conditions contained in permits of each of the sources and all other applicable emission limitations and

standards under the Act and this Chapter.

3. The person demonstrates that emission reductions for the specific pollutant(s) from source(s) in existence in the

allowable offset area of the new major source or major modification (whether or not under the same ownership) meet

the offset and net air quality benefit requirements of R18-2-404.

B. No permit or permit revision under this Article shall be issued to a person proposing to construct a new major source or

make a major modification to a major source located in a nonattainment area unless:

1. The person performs an analysis of alternative sites, sizes, production processes, and environmental control techniques for such new major source or major modification; and

2. The Director determines that the analysis demonstrates that the benefits of the new major source or major modification significantly outweigh the environmental and social costs imposed as a result of its location, construction, or

modification.

C. At such time that a particular source or modification becomes a major stationary source or major modification solely by

virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of the

source or modification otherwise to emit a pollutant, such as restriction on hours of operation, then the requirements of

this Section shall apply to the source or modification as though construction had not yet commenced on the source or

modification.

D. Secondary emissions shall not be considered in determining the potential to emit of a new source or modification and

therefore whether the new source or modification is major. However, if a new source or modification is subject to this Section on the basis of its direct emissions, a permit or permit revision under this Article to construct the new source or modification shall be denied unless the conditions specified in subsections (A)(1) and (2) requirements of R18-2-403(A)(3)

and R18-2-404 are met for reasonably quantifiable secondary emissions caused by the new source or modification.

E. A permit to construct a new major source or major modification shall be denied unless the conditions specified in subsections (A)(1), (2), and (3) are met for fugitive emissions caused by the new source or modification. However, these conditions shall not apply to a new major source or major modification that would be a major source or major modification only

if fugitive emissions, to the extent quantifiable, are considered in calculating the potential emissions of the source or modification, and the source is not either a categorical source or belongs to the category of sources for which New Source Performance Standards under 40 CFR 60 or National Emission Standards for Hazardous Air Pollutants under 40 CFR 61

were promulgated by the Administrator prior to August 7, 1980. does not belong to a section 302(j) category.

F. The requirements of subsection (A)(3) shall not apply to temporary emission sources emissions units, such as pilot plants,

and portable sources, which are only temporarily located in facilities that will be relocated outside of the nonattainment

area and the construction phase of a new source, if those units will operate for no more than 24 months in the nonattainment area, are otherwise regulated by in compliance with the requirement to obtain a permit under this Chapter, and are in

compliance with the conditions of that permit.

G. A decrease in actual emissions shall be considered in determining the potential of a new source or modification to emit

only to the extent that the Director has not relied on it in issuing any permit or permit revision under this Article or the

state has not relied on it in demonstrating attainment or reasonable further progress.

H. Within 30 days of the issuance of any permit under this Section, the Director shall submit control technology information

from the permit to the Administrator for the purposes listed in Section 173(d) of the Act.

I. The issuance of a permit or permit revision under this Article in accordance with this Section shall not relieve the owner

or operator of the responsibility to comply fully with applicable provisions of the SIP and any other requirements under

local, state, or federal law.

R18-2-404. Offset and et Air Quality Benefit Standards

A. Increased emissions by a major source or major modification subject to this Article shall be offset by reductions in the

emissions of each pollutant for which the area has been designated as nonattainment and for which the source or modification is classified as major. The offset may be obtained by reductions in emissions from the source or modification or

from any other source in the allowable offset area. Credit for an emissions offset can be used only if it has not been relied

upon in demonstrating attainment or reasonable further progress and if it has not been relied upon previously in issuing a

permit or permit revision under this Article under R18-2-402 and R18-2-403 or is not otherwise required under this Chapter or under any provision of the SIP.

B. An offset shall not be sufficient unless reductions of total emissions for the particular pollutant for which the offset is

required will be:

1. Obtained from sources within the allowable offset area;

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2. Contemporaneous with the operation of the new major source or major modification;

3. Less than the baseline of the total emissions for that pollutant, except in ozone nonattainment areas classified as moderate, serious, or severe; and

4. Sufficient to demonstrate that emissions from the new major source or major modification, together with the offset,

will result in reasonable further progress for that pollutant.

C. In ozone nonattainment areas classified as marginal, total emissions of VOC and oxides of nitrogen from other sources

shall offset those proposed or permitted from the major source or major modification by a ratio of at least 1.10 to 1. In

ozone nonattainment areas classified as moderate, total emissions of VOC and oxides of nitrogen from other sources shall

offset those proposed or permitted from the major source or major modification by a ratio of at least 1.15 to 1. New major

sources and major modifications in serious and severe ozone nonattainment areas shall comply with this Section and R18-

2-405.

D. Only intrapollutant emission offsets shall be allowed. Intrapollutant emission offsets for VOC shall only include offset

reductions in emissions of VOC. Intrapollutant emission offsets for oxides of nitrogen shall only include offset reductions

in emissions of oxides of nitrogen.

E. For purposes of this Section, “reasonable further progress” means compliance with the schedule of annual incremental

reductions in emissions of the applicable air pollutant prescribed by the Director based on air quality modeling under R18-

2-409, to provide for attainment of the applicable air quality standards by the deadlines set under Part D of Title I of the

Act, or in an applicable implementation plan.

F. For purposes of this Article, “net air quality benefit” means that, during similar time periods, either subsection (F)(1) or

(2) below is applicable:

1. A reduction in the number of violations of the applicable Arizona ambient air quality standard within the allowable

offset area has occurred and the following mathematical expression is satisfied:

when:

C = The applicable Arizona ambient air quality standard.

xi = The concentration level of the violation at the i[th] receptor for the pollutant after offsets.

N = The number of violations for the pollutant after offsets (N ≤ K).

xj = The concentration level of the violation at the j[th] receptor for the pollutant before offsets.

K = The number of violations for the pollutant before offsets.

2. The average of the ambient concentrations within the allowable offset area after the implementation of the contemplated offsets will be less than the average of the ambient concentrations within the allowable offset area without the

offsets.

G. Baseline further defined:

1. For the purpose of this Section, the baseline of total emissions from any sources in existence or sources that have

obtained a permit or permit revision under this Article (regardless of whether or not the sources are in actual operation at the time of application for the permit or permit revision) shall be the total actual emissions at the time the

application is filed. In addition, the baseline of total emissions shall consist of all emission limitations included as

conditions on federally enforceable permits except that the offset baseline shall be the actual emissions of the source

from which offset credit is obtained if:

a. No emission limitations are applicable to a source from which offsets are being sought; or

b. The demonstration of reasonable further progress and attainment of ambient air quality standards is based upon

the actual emissions of sources located within a designated nonattainment area.

2. If the emission limitations for a particular pollutant allow greater emissions than the potential emission rate of the

source for that pollutant, the baseline shall be the potential emission rate at the time application for the permit or permit revision under this Article is filed, and emissions offset credit shall be allowed only for control below the potential emission rate.

H. For an existing fuel combustion source, offset credit shall be based on the allowable emissions under the regulations or

permit conditions applicable to the source for the type of fuel being burned at the time the application for the permit or

permit revision under this Article is filed. If an existing source commits to switch to a cleaner fuel at some future date,

emissions offset credit based on the actual emissions for the fuels involved shall not be acceptable unless:

1. The permit or permit revision under this Article for the source specifically requires the use of a specified alternative

control measure that would achieve the same degree of emissions reduction if the source switches back to a dirtier

fuel at some later date; and

2. The source demonstrates to the Director that it has secured an adequate long-term supply of the cleaner fuel.

I. Offsets shall be made on either a pounds-per-hour, pounds-per-day, or tons-per-year basis, whichever is applicable, when

xi– C




-------------

i = 1




∑

xj– C

K

-------------

j = 1

K

≤ ∑

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all facilities involved in the emission offset calculations are operating at their maximum expected or allowed production

rate and, except as otherwise provided in subsection (H), utilizing the type of fuel burned at the time the application for

the permit or permit revision under this Article is filed. A tons-per-year basis shall not be used if the new or modified

source or the source offsets is not expected to operate throughout the entire year. No emissions credit may be allowed for

replacing one VOC with another VOC of lesser reactivity.

J. Emissions reductions achieved by shutting down an existing source or permanently curtailing production or operating

hours below baseline levels may be credited, if the work force to be affected has been notified of the proposed shutdown

or curtailment. No offset credit for shutdowns or curtailments shall be provided for emissions reductions that are necessary to bring a source into compliance with RACT or any other standard under an applicable implementation plan.

K. The allowable offset area shall be the geographical area in which the sources are located whose emissions are being

sought to offset emissions from a new major source or major modification. For the pollutants sulfur dioxide, PM10, and

carbon monoxide, the allowable offset area shall be determined by atmospheric dispersion modeling. If the emission offsets are obtained from a source on the same premises or in the immediate vicinity of the new major source or major modification, and the pollutants disperse from substantially the same effective stack height, atmospheric dispersion modeling

shall not be required. The allowable offset area for all other pollutants shall be the nonattainment areas for those pollutants

within which the new major source or major modification is to be located.

L. An emission reduction may only be used to offset emissions if the reduced level of emissions will continue for the life of

the new source or modification and if the reduced level of emissions is federally and legally enforceable at the time of permit issuance. It shall be considered legally enforceable if the following conditions are met:

1. The emission reduction is included as a condition in the permit of the source relied upon to offset the emissions from

the new major source or major modification, or in the case of reductions from sources controlled by the applicant, is

included as a condition of the permit or permit revision under this Article for the new major source or major modification;

2. The emission reduction is adopted as a part of this Chapter or comparable rules of any other governmental entity or is

contractually enforceable by the Department and is in effect at the time the permit is issued.

A. Increased emissions by a major source or major modification subject to R18-2-403 shall be offset by real reductions in the

actual emissions of each pollutant for which the area has been designated as nonattainment and for which the source or

modification is classified as major. Except as provided in R18-2-405, emissions increases shall be offset by decreases at a

ratio of at least 1 to 1.

B. Except as provided in subsection (B)(1) or (2), for sources and modifications subject to this Section, the baseline for determining credit for emissions reductions is the emissions limit for the source generating the offset credit under the applicable implementation plan in effect at the time the application for a permit or permit revision is filed.

1. The offset baseline shall be the actual emissions of the source from which offset credit is obtained where either of the

following conditions is satisfied:

a. The demonstration of reasonable further progress and attainment of ambient air quality standards is based upon

the actual emissions of sources located within a designated nonattainment area for which the preconstruction

review program was adopted.

b. The applicable implementation plan does not contain an emissions limitation for that source or source category.

2. Where the emissions limit under the applicable implementation plan allows greater emissions than the potential to

emit of the source, emissions offset credit will be allowed only for control below this potential.

C. For an existing fuel combustion source, emissions offset credit shall be based on the allowable emissions under the applicable implementation plan for the type of fuel being burned at the time the application to construct is filed. If the existing

source commits to switch to a cleaner fuel at some future date, emissions offset credit based on the allowable or actual

emissions for the fuels involved is not acceptable, unless the permit for the existing source is conditioned to require the

use of a specified alternative control measure which would achieve the same degree of emissions reduction should the

source switch back to a fuel generating higher emissions. The owner or operator of the existing source must demonstrate

that adequate long-term supplies of the new fuel are available before granting emissions offset credit for fuel switches.

D. Offset Credit for Shutdowns.

1. Emissions reductions achieved by shutting down an existing emission unit or curtailing production or operating hours

may be credited for offsets if they meet both of the following conditions.

a. The reductions are surplus, permanent, quantifiable, and federally enforceable.

b. The shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this subsection, the Director may choose to consider a prior shutdown or curtailment to have occurred

after the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units. However, in no

event may credit be given for shutdowns that occurred before August 7, 1977.

2. Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating

hours and that do not meet the requirements in subsection (D)(1)(b) may be credited only if one of the following conditions is satisfied:

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a. The shutdown or curtailment occurred on or after the date the construction permit application is filed.

b. The applicant can establish that the proposed new emissions unit is a replacement for the shutdown or curtailed

emissions unit, and the emissions reductions achieved by the shutdown or curtailment met the requirements of

subsection (D)(1)(a).

E. No emissions credit may be allowed for replacing one hydrocarbon compound with another of lesser reactivity, except for

those compounds listed in Table 1 of EPA’s “Recommended Policy on Control of Volatile Organic Compounds,” 42 FR

35314 (July 8, 1977).

F. All emission reductions claimed as offset credits shall be federally enforceable by the time a permit is issued to the owner

or operator of the major source subject to this Section and shall be in effect by the time the new or modified source subject

to the permit commences operation.

G. The owner or operator of a major source or major modification subject to this Section must obtain offset credits from the

same source or from other sources in the same nonattainment area, except that the Director may allow the owner or operator to obtain offset credits from another nonattainment area if both of the following conditions are satisfied:

1. The other area has an equal or higher nonattainment classification than the area in which the source is located.

2. Emissions from such other area contribute to a violation of the national ambient air quality standard in the nonattainment area in which the source is located.

H. Credit for an emissions reduction can be claimed to the extent that the Director has not relied on it in issuing any permit

under this Article or the state has not relied on it in a demonstration of attainment or reasonable further progress.

I. The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset under

this Section shall be determined by summing the difference between the allowable emissions after the modification and

the actual emissions before the modification for each emissions unit.

J. In ozone nonattainment areas classified as marginal, total emissions of VOC and oxides of nitrogen from other sources

shall offset those proposed or permitted from the major source or major modification by a ratio of at least 1.10 to 1. In

ozone nonattainment areas classified as moderate, total emissions of VOC and oxides of nitrogen from other sources shall

offset those proposed or permitted from the major source or major modification by a ratio of at least 1.15 to 1. New major

sources and major modifications in serious and severe ozone nonattainment areas shall comply with this Section and R18-

2-405.

R18-2-405. Special Rule for Major Sources of VOC or itrogen Oxides of itrogen in Ozone onattainment Areas

Classified as Serious or Severe

A. Applicability. The provisions of this Section only apply to stationary sources of VOC or nitrogen oxides of nitrogen in

ozone nonattainment areas classified as serious or severe. Unless otherwise provided in this Section, all requirements of

Articles 3 and 4 of this Chapter apply.

B. “Significant” means, for the purposes of a major modification of any major stationary source of VOC or nitrogen oxides

of nitrogen, or for determining whether an otherwise minor source is major under R18-2-401(9)(d) the definition of major

source in R18-2-401, any physical change or change in the method of operations that results in net increases in emissions

of either pollutant by more than 25 tons when aggregated with all other creditable increases and decreases in emissions

from the source over the previous five consecutive calendar years, including the calendar year in which the increase is

proposed. For the purposes of this subsection, a physical change or change in the method of operation that results in an

increase of less than one ton per year of VOC or oxides of nitrogen before netting does not trigger a five-year aggregation

exercise.

C. For any major source that emits or has the potential to emit less than 100 tons of VOC or oxides of nitrogen per year, a

physical or operational change that results in a significant increase in VOC or oxides of nitrogen, respectively, from any

discrete operation, unit, or other pollutant emitting activity at the source shall constitute a major modification, except that

the increase shall not constitute a major modification, if the owner or operator of the source elects to in emissions from

any discrete emissions unit, operation, or other pollutant emitting activity that is offset the increase by a greater reduction

in emissions of VOC or oxides of nitrogen, as applicable, from other units, operations, units or activities at the source at a

an internal offset ratio of at least 1.3 to 1 for the increase in VOC or oxides of nitrogen, respectively, from the unit, operation, or activity shall not be considered part of the major modification. If the owner or operator does not make such an

election, the change shall constitute a major modification but BACT shall be substituted for LAER when applying R18-2-

403(A)(1) to the major modification for all major modifications under this subsection. Net emissions increases in VOC or

oxides of nitrogen above the internal offset described herein shall be subject to the offset requirements in subsections (E)

and (F).

D. For any stationary source that emits or has the potential to emit 100 tons or more of VOC or oxides of nitrogen per year, a

physical or operational change that results in any significant increase in VOC from any discrete operation, unit or other

pollutant emitting activity at the source or oxides of nitrogen, respectively, shall constitute a major modification except

that if the owner or operator of the source elects to offset the increase by a greater reduction in emissions of VOC or

oxides of nitrogen, as applicable, from other operations, units or activities within the source at an internal offset ratio of at

least 1.3 to 1, R18-2-403(A)(1) shall not apply to the change. If the increase in emissions from the modification at any discrete emissions unit, operation, or other pollutant emitting activity is offset from other units, operations, or activities at the

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source at a ratio of 1.3 to 1 for the increase in VOC or oxides of nitrogen, respectively, from the unit, operation, or activity,

BACT shall be substituted for LAER at the unit, operation, or activity. Net emissions increases in VOC or oxides of nitrogen above the internal offset described herein shall be subject to the offset requirements in subsections (E) and (F).

E. For any new major source or major modification that is classified as major because of emissions or potential to emit VOC

or nitrogen oxides of nitrogen in an ozone nonattainment area classified as serious, the increase in emissions of these pollutants from the source or modification shall be offset at a ratio of 1.2 to 1. The offset shall be made in accordance with the

provisions of R18-2-404.

F. For any new major source or major modification that is classified as such because of emissions or potential to emit VOC

or nitrogen oxides of nitrogen in an ozone nonattainment area classified as severe, the increase in emissions of these pollutants from the source or modification shall be offset at a ratio of 1.3 to 1. If the SIP requires all existing major sources of

these pollutants in the nonattainment area to apply BACT, then the offset ratio shall be 1.2 to 1. These offsets shall be

made in accordance with the provisions of R18-2-404.

R18-2-406. Permit Requirements for Sources Located in Attainment and Unclassifiable Areas

A. Except as provided in subsections (B) through (G) below and R18-2-408 (Innovative control technology), no permit or

permit revision under this Article shall be issued to a person proposing to construct a new major source or make a major

modification to a major source that would be constructed in an area designated as attainment or unclassifiable for any regulated NSR pollutant unless the source or modification meets the following conditions:

1. A new major source shall apply best available control technology (BACT) for each regulated NSR pollutant listed in

R18-2-101(104)(a) for which the potential to emit is significant.

2. A major modification shall apply BACT for each regulated NSR pollutant listed in R18-2-101(104)(a) for which the

modification project would result in a significant net emissions increase at the source. This requirement applies to

each proposed emissions unit at which a net emissions increase in the pollutant would occur as a result of a physical

change or change in the method of operation in the unit.

3. For phased construction projects, the determination of BACT shall be reviewed and modified as appropriate at the

latest reasonable time which occurs no later than 18 months prior to commencement of construction of each independent phase of the project. At such time the owner or operator of the applicable stationary source may be required to

demonstrate the adequacy of any previous determination of best available control technology BACT for the source.

4. BACT shall be determined on a case-by-case basis and may constitute application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment, clean fuels, or innovative fuel combustion techniques, for control of such pollutant. In no event shall such application of BACT result in emissions of any

pollutant, which would exceed the emissions allowed by any applicable new source performance standard or national

emission standard for hazardous air pollutants under Articles 9 and 11 of this Chapter or by the applicable implementation plan. If the Director determines that technological or economic limitations on the application of measurement

methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design,

equipment, work practice, operational standard, or combination thereof may be prescribed instead to satisfy the

requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation and shall provide for compliance by means which achieve equivalent results.

5. The person applying for the permit or permit revision under this Article performs an air impact analysis and monitoring as specified in R18-2-407, and such analysis demonstrates that allowable emission increases from the proposed

new major source or major modification, in conjunction with all other applicable emission increases or reductions,

including secondary emissions, for all pollutants listed in R18-2-218(A), and including minor and mobile source

emissions of nitrogen oxides of nitrogen and PM10:

a. Would not cause or contribute to concentrations of conventional air pollutants in violation of any ambient air

quality standard in Article 2 of this Chapter in any air quality control region or an increase in concentrations of

any pollutant by an amount in excess of any applicable maximum allowable increase under R18-2-218 over the

baseline concentration in R18-2-218 for any attainment or unclassified area; or

b. Would not contribute to an increase in ambient concentrations for a pollutant by an amount in excess of the significance level for such pollutant in any adjacent area in which Arizona primary or secondary ambient air quality

standards for that pollutant are being violated. A new major source of volatile organic compounds or nitrogen

oxides of nitrogen, or a major modification to a major source of volatile organic compounds or nitrogen oxides of

nitrogen shall be presumed to contribute to violations of the Arizona ambient air quality standards for ozone if it

will be located within 50 kilometers of a nonattainment area for ozone. The presumption may be rebutted for a

new major source or major modification if it can be satisfactorily demonstrated to the Director that emissions of

volatile organic compounds or nitrogen oxides of nitrogen from the new major source or major modification will

not contribute to violations of the Arizona ambient air quality standards for ozone in adjacent nonattainment

areas for ozone. Such a demonstration shall include a showing that topographical, meteorological, or other physical factors in the vicinity of the new major source or major modification are such that transport of volatile

organic compounds emitted from the source are not expected to contribute to violations of the ozone standards in

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the adjacent nonattainment areas.

6. Air quality models:

a. All estimates of ambient concentrations required under this Section shall be based on the applicable air quality

models, data basis, and other requirements specified in 40 CFR 51, Appendix W, “Guideline On Air Quality

Models,” as of July 1, 2004 2011 (and no future amendments or editions), which shall be referred to hereinafter

as “Guideline” and is adopted by reference and is on file with the Department.

b. Where an air quality impact model specified in the “Guideline” is not applicable, the model may be modified or

another model substituted. Such a change shall be subject to notice and opportunity for public comment. Written

approval of the EPA Administrator shall be obtained for any modification or substitution.

B. The requirements of this Section shall not apply to a new major source or major modification to a source with respect to a

particular pollutant if the person applying for the permit or permit revision under this Article demonstrates that, as to that

pollutant, the source or modification is located in an area designated as nonattainment for the pollutant.

C. The requirements of this Section shall not apply to a new major source or a major modification of a source if such source

or modification would be a major source or major modification only if fugitive emissions, to the extent quantifiable, are

considered in calculating the potential emissions of the source or modification, and the source is not either among the Categorical Sources listed in R18-2-101 or belongs to the category of sources for which New Source Performance Standards

under 40 CFR 60 or National Emission Standards for Hazardous Air Pollutants under 40 CFR 61 promulgated by the

Administrator prior to August 7, 1980 does not belong to a section 302(j) category.

D. The requirements of this Section shall not apply to a new major source or major modification to a source when the owner

of such source is a nonprofit health or educational institution.

E. The requirements of this Section shall not apply to a portable source which would otherwise be a new major source or

major modification to an existing source if such portable source is temporary will operate for no more than 24 months, is

under a permit or permit revision under this Article, is in compliance with the conditions of that permit or permit revision

under this Article, the emissions from the source will not impact a Class I area nor an area where an applicable increment

is known to be violated, and reasonable notice is given to the Director prior to the relocation identifying the proposed new

location and the probable duration of operation at the new location. Such notice shall be given to the Director not less than

10 calendar days in advance of the proposed relocation unless a different time duration is previously approved by the

Director.

F. Special rules applicable to Federal Land Managers:

1. Notwithstanding any other provision of this Section, a Federal Land Manager may present to the Director a demonstration that the emissions attributed to such new major source or major modification to a source will would have significant an adverse impact on visibility or other specifically defined air quality related values of any Federal

Mandatory area designated in R18-2-217(B) regardless of the fact that the change in air quality resulting from emissions attributable to such new major source or major modification to a source in existence will not cause or contribute

to concentrations which exceed the maximum allowable increases for a Class I the area in R18-2-218. If the Director

concurs with such demonstrations, the permit or permit revision under this Article shall be denied.

2. If the owner or operator of a proposed new major source or a source for which major modification is proposed demonstrates to the Federal Land Manager that the emissions attributable to such major source or major modification will

have no significant adverse impact on the visibility or other specifically defined air quality-related values of such

areas and the Federal Land Manager so certifies to the Director, the Director may issue a permit or permit revision

under this Article, notwithstanding the fact that the change in air quality resulting from emissions attributable to such

new major source or major modification will cause or contribute to concentrations which exceed the maximum allowable increases for a Class I area. Such a permit or permit revision under this Article shall require that such new major

source or major modification comply with such emission limitations as may be necessary to assure that emissions will

not cause increases in ambient concentrations greater than the following maximum allowable increases over baseline

concentrations for such pollutants:

Maximum Allowable Increase

(Micrograms per cubic meter)

Sulfur Oxide

Period of exposure

Low terrain areas:

24-hour maximum

3-hour maximum

High terrain areas:

24-hour maximum

3-hour maximum

36

130

62

221

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G. The issuance of a permit or permit revision under this Article in accordance with this Section shall not relieve the owner

or operator of the responsibility to comply fully with applicable provisions of the SIP and any other requirements under

local, state, or federal law.

H. At such time that a particular source or modification becomes a major source or major modification solely by virtue of a

relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then the requirements of this Section

shall apply to the source or modification as though construction had not yet commenced on the source or modification.

R18-2-407. Air Quality Impact Analysis and Monitoring Requirements

A. Any application for a permit or permit revision under this Article to construct a new major source or major modification to

a major source shall contain an analysis of ambient air quality in the area that the new major source or major modification

would affect for each of the following pollutants:

1. For the new source, each pollutant that it would have the potential to emit in a significant amount;

2. For the modification, each pollutant for which it would result in a significant net emissions increase.

B. With respect to any such pollutant for which no Arizona ambient air quality standard exists, the analysis shall contain all

air quality monitoring data as the Director determines is necessary to assess ambient air quality for that pollutant in any

area that the emissions of the pollutant would affect.

C. With respect to any such pollutant (other than nonmethane hydrocarbons) for which such a standard does exist, the analysis shall contain continuous air quality monitoring data gathered for purposes of determining whether emissions of that

pollutant would cause or contribute to a violation of the standard or any maximum allowable increase.

D. In general, the continuous air quality monitoring data that is required shall have been gathered over a period of at least one

year and shall represent at least the year preceding receipt of the application, except that, if the Director determines that a

complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one year

(but not to be less than four months), the data that is required shall have been gathered over at least that shorter period.

E. The owner or operator of a proposed stationary source or modification to a source of volatile organic compounds who satisfies all conditions of 40 CFR 51, Appendix S, Section IV, may provide post-approval monitoring data for ozone in lieu

of providing preconstruction data as required under subsections (B), (C), and (D) above.

F. Post-construction monitoring. The owner or operator of a new major source or major modification shall, after construction

of the source or modification, conduct such ambient monitoring as the Director determines is necessary to determine the

effect emissions from the new source or modification may have, or are having, on air quality in any area.

G. Operations of monitoring stations. The owner or operator of a new major source or major modification shall meet the

requirements of 40 CFR 58, Appendix B, during the operation of monitoring stations for purposes of satisfying subsections (B) through (F) above.

H. The requirements of subsections (B) through (G) above shall not apply to a new major source or major modification to an

existing source with respect to monitoring for a particular pollutant if:

1. The emissions increase of the pollutant from the new source or the net emissions increase of the pollutant from the

modification would cause, in any area, air quality impacts less than the following amounts:

a. Carbon Monoxide - 575 μg/m3

, eight-hour average;

b. Nitrogen dioxide - 14 μg/m3, annual average:;

Pollutant

Maximum 

allowable increase

(micrograms per cubic meter)

PM2.5:

Annual arithmetic mean 4

24-hr maximum 9

PM10:

Annual arithmetic mean 17

24-hr maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24-hr maximum 91

3-hr maximum 325

Nitrogen dioxide

Annual arithmetic mean 25

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c. PM2.5 – 4 μg/m3, 24-hour average;

d. PM10 - 10 μg/m3, 24-hour average;

e. Sulfur dioxide - 13 μg/m3, 24-hour average;

f. Lead - 0.1 μg/m3, 24-hour average;

g. Fluorides - 0.25 μg/m3

, 24-hour average;

h. Total reduced sulfur - 10 μg/m3, one-hour average;

i. Hydrogen sulfide - 0.04 μg/m3, one-hour average;

j. Reduced sulfur compounds - 10 μg/m3

, one-hour average;

k. Ozone - increased emissions of less than 100 tons per year of volatile organic compounds or oxides of nitrogen;

or,

2. The concentrations of the pollutant in the area that the new source or modification would affect are less than the concentrations listed in subsection (H)(1) above.

I. Any application for permit or permit revision under this Article to construct a new major source or major modification to

a source shall contain:

1. An analysis of the impairment to visibility, soils, and vegetation that would occur as a result of the new source or

modification and general commercial, residential, industrial, and other growth associated with the new source or

modification. The applicant need not provide an analysis of the impact on vegetation having no significant commercial or recreational value.

2. An analysis of the air quality impact projected for the area as a result of general commercial, residential, industrial,

and other growth associated with the new source or modification.

R18-2-411. Special Rule for on-operating Sources of Sulfur Dioxide in Sulfur Dioxide onattainment Areas

Repealed

A. If an emissions unit that is a major source of sulfur dioxide located in a sulfur dioxide nonattainment area has not operated

for more than 24 consecutive calendar months, it may only be restarted if the owner or operator of such source does all of

the following:

1. Demonstrates, according to the air quality impact analysis requirements of R18-2-406(A)(5) and (6) that emissions

from that unit, including fugitive emissions, will not cause or contribute to a violation of the ambient standard for sulfur dioxide in R18-2-202;

2. Demonstrates that startup of that unit will not require reconstruction; and

3. Submits a startup plan that includes a source testing plan.

B. The demonstrations and plan shall be submitted to the Director at least 180 days prior to the expected day when the

restarting of the non-operating unit will commence. The Director may request additional information, as necessary, to

evaluate the submittals. The unit shall not be restarted unless the Director approves the submittal.

C. If the Director disapproves a demonstration or plan required in subsection (A), or such demonstration or plan, including

additional information requested by the Director, is not submitted in a timely manner, the source shall be required to

obtain a permit pursuant to the requirements for a new major source or major modification as contained in this Article.

D. The conduct of performance tests that comply with the requirements of R18-2-312 and demonstrate compliance with

emission limits prescribed in a permit for that source or an applicable rule shall constitute operation of an emissions unit

for the purposes of this Section.

R18-2-412. PALs

A. Applicability.

1. The Director may approve the use of a PAL for any existing major source if the PAL meets the requirements of this

Section.

2. Any physical change in or change in the method of operation of a major stationary source that maintains its total

source-wide emissions below the PAL level, meets the requirements of this Section, and complies with the PAL permit:

a. Is not a major modification for the PAL pollutant,

b. Does not have to be approved through the PSD program, and

c. Is not subject to the provisions in R18-2-403(C) or R18-2-406(H).

3. Except as provided under subsection (A)(2)(c), a major stationary source shall continue to comply with all applicable

federal or state requirements, emission limitations, and work practice requirements that were established prior to the

effective date of the PAL.

B. Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major source

shall submit the following information to the Director for approval:

1. A list of all emissions units at the source designated as small, significant or major based on their potential to emit. In

addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements,

emission limitations, or work practices apply to each unit.

2. Calculations of the baseline actual emissions (with supporting documentation).

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3. The calculation procedures that the major source owner or operator proposes to use to convert the monitoring system

data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by subsection (L)(1).

C. General requirements for establishing PALs.

1. The Director is allowed to establish a PAL at a major source, provided that at a minimum, the following requirements

are met:

a. The PAL shall impose an annual emission limitation in tons per year, that is enforceable as a practical matter, for

the entire major source. For each month during the PAL effective period after the first 12 months of establishing

a PAL, the major source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month sum, rolled

monthly). For each month during the first 11 months from the PAL effective date, the major source owner or

operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL.

b. The PAL shall be established in a PAL permit that meets the requirements in subsection (D).

c. The PAL permit shall contain all the requirements of subsection (F).

d. The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have

the potential to emit the PAL pollutant at the major source.

e. Each PAL shall regulate emissions of only one pollutant.

f. Each PAL shall have a PAL effective period of 10 years.

g. The owner or operator of the major source with a PAL shall comply with the monitoring, recordkeeping, and

reporting requirements provided in subsections (K) through (M) for each emissions unit under the PAL through

the PAL effective period.

2. At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant that occur during the

PAL effective period creditable as decreases for purposes of offsets under R18-2-404 unless the level of the PAL is

reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the

PAL.

D. Action on PAL permit application. A PAL permit application shall be processed in accordance with one of the following:

1. As an initial Class I permit pursuant to R18-2-304.

2. As a renewal of a Class I permit pursuant to R18-2-322.

3. As a significant revision to a Class I permit pursuant to R18-2-320.

E. Setting the 10-year actuals PAL level.

1. Except as provided in subsection (E)(2), the PAL level for a major source shall be established as the sum of the baseline actual emissions of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant. When establishing the PAL level, only one consecutive 24-month period

must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shut down after this 24-month period must be subtracted from the PAL level. The Director shall specify a

reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of any applicable federal or state regulatory requirement(s) that the Director is aware of prior to issuance of the PAL permit. For

instance, if the source owner or operator will be required to reduce emissions from industrial boilers in half from

baseline emissions of 60 ppm NOX to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL

level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit(s).

2. For newly constructed units (which do not include modifications to existing units) on which actual construction

began after the 24-month period, in lieu of adding the baseline actual emissions as specified in subsection (E)(1), the

emissions must be added to the PAL level in an amount equal to the potential to emit of the units.

F. Contents of the PAL permit. The PAL permit must contain, at a minimum, the following information:

1. The PAL pollutant and the applicable source-wide emission limitation in tons per year.

2. The PAL permit effective date and the expiration date of the PAL (PAL effective period).

3. Specification in the PAL permit that if a major source owner or operator applies to renew a PAL in accordance with

subsection (I) before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective

period. It shall remain in effect until a revised PAL permit is issued by the Director.

4. A requirement that emission calculations for compliance purposes must include emissions from startups, shutdowns,

and malfunctions.

5. A requirement that, once the PAL expires, the major source is subject to the requirements of subsection (H).

6. The calculation procedures that the major source owner or operator shall use to convert the monitoring system data to

monthly emissions and annual emissions based on a 12-month rolling total as required by subsection (L)(1).

7. A requirement that the major source owner or operator monitor all emissions units in accordance with the provisions

under subsection (K).

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tronic format.

9. A requirement to submit the reports required under subsection (M) by the required deadlines.

10. Any other requirements that the Director deems necessary to implement and enforce the PAL.

G. PAL effective period and reopening of the PAL permit.

1. PAL effective period. The Director shall specify a PAL effective period of 10 years.

2. Reopening of the PAL permit.

a. During the PAL effective period, the Director must reopen the PAL permit to:

i. Correct typographical/calculation errors made in setting the PAL or reflect a more accurate determination of

emissions used to establish the PAL,

ii. Reduce the PAL if the owner or operator of the major source creates creditable emissions reductions for use

as offsets under R18-2-404, and

iii. Revise the PAL to reflect an increase in the PAL as provided under subsection (J).

b. The Director shall have discretion to reopen the PAL permit for the following:

i. Reduce the PAL to reflect new federal applicable requirements with compliance dates after the PAL effective date;

ii. Reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the

state may impose on the major source under the State Implementation Plan; and

iii. Reduce the PAL if the Director determines that a reduction is necessary to avoid causing or contributing to a

NAAQS or PSD increment violation, or to an adverse impact on an air quality related value that has been

identified for a Federal Class I area by a Federal Land Manager and for which information is available to the

general public.

c. Except for the permit reopening in subsection (G)(2)(a)(i) for the correction of typographical/calculation errors

that do not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirements of subsection (D).

H. Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in subsection (I) shall expire at the

end of the PAL effective period, and the following requirements shall apply.

1. Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable

emission limitation under a revised permit established according to the following procedures.

a. Within the time-frame specified for PAL renewals in subsection (I)(2), the major source shall submit a proposed

allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is

more appropriate) by distributing the PAL allowable emissions for the major source among each of the emissions

units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became

effective during the PAL effective period, as would be required under subsection (I)(5), such distribution shall be

made as if the PAL had been adjusted.

b. The Director shall decide how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the Director determines is

appropriate.

2. Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling basis. The Director

may approve the use of monitoring systems (source testing, emission factors, etc.) other than CEMS, CERMS,

PEMS, or CPMS to demonstrate compliance with the allowable emission limitation.

3. Until the Director issues the revised permit incorporating allowable limits for each emissions unit, or each group of

emissions units, as required under subsection (H)(1)(b), the source shall continue to comply with a source-wide,

multi-unit emissions cap equivalent to the level of the PAL emission limitation.

4. Any physical change or change in the method of operation at the major source will be subject to the applicability criteria set forth at subsection (C).

5. The major source owner or operator shall continue to comply with any applicable requirements that may have applied

during the PAL effective period. Emission limitations that were eliminated by the PAL in accordance with subsection

(A)(2)(c) shall not be reinstated.

I. Renewal of a PAL.

1. The Director shall follow the procedures specified in subsection (F) in approving any request to renew a PAL for a

major source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the

public for review and comment. During such public review, any person may propose a PAL level for the source for

consideration by the Director.

2. Application deadline. A major source owner or operator shall submit a timely application to the Director to request

renewal of a PAL. A timely application is one that is submitted at least six months prior to, but not earlier than 18

months from, the date of permit expiration. This deadline for application submittal is to ensure that the permit will not

expire before the permit is renewed. If the owner or operator of a major source submits a complete application to

renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the

renewed PAL is issued.

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3. Application requirements. The application to renew a PAL permit shall contain the following information.

a. The information required in subsections (B)(1) through (3).

b. A proposed PAL level.

c. The sum of the potential to emit of all emissions units under the PAL (with supporting documentation).

d. Any other information the owner or operator wishes the Director to consider in determining the appropriate level

for renewing the PAL.

4. PAL adjustment. In determining whether and how to adjust the PAL, the Director shall consider the options outlined

in subsections (I)(4)(a) and (b). However, in no case may any such adjustment fail to comply with subsection

(I)(4)(c).

a. If the emissions level calculated in accordance with subsection (F) is equal to or greater than 80% of the PAL

level, the Director may renew the PAL at the same level without considering the factors set forth in subsection

(I)(4)(b); or

b. The Director may set the PAL at a level that the Director determines to be more representative of the source’s

baseline actual emissions, or that the Director determines to be more appropriate considering air quality needs,

advances in control technology, anticipated economic growth in the area, desire to reward or encourage the

source’s voluntary emissions reductions, or other factors as specifically identified by the Director in the Director’s written rationale.

c. Notwithstanding subsections (I)(4)(a) and (b):

i. If the potential to emit of the major source is less than the PAL, the Director shall adjust the PAL to a level

no greater than the potential to emit of the source; and

ii. The Director shall not approve a renewed PAL level higher than the current PAL, unless the PAL has been

increased in accordance with subsection (J).

5. If the compliance date for an applicable requirement that applies to the PAL source occurs during the PAL effective

period, and if the Director has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL

permit renewal or renewal of the source’s Class I permit, whichever occurs first.

J. Increasing a PAL during the PAL effective period.

1. The Director may increase a PAL emission limitation only if the following requirements are met:

a. The owner or operator of the major source shall submit a complete application to request an increase in the PAL

limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the

increase in emissions so as to cause the major source’s emissions to equal or exceed its PAL.

b. As part of this application, the major source owner or operator shall demonstrate that the sum of the baseline

actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and

major emissions units assuming application of BACT or LAER equivalent controls, plus the sum of the PAL

allowable emissions of the new or modified emissions unit(s) exceeds the PAL. The level of control that would

result from BACT or LAER equivalent controls on each significant or major emissions unit shall be determined

by conducting a new BACT or LAER analysis at the time the application is submitted, as applicable for the particular PAL pollutant, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that

emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply.

c. The owner or operator obtains a major NSR permit for all emissions unit(s) identified in subsection (J)(1)(a),

regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply).

These emissions unit(s) shall comply with any emissions requirements resulting from the major NSR process

(for example, BACT), even though they have also become subject to the PAL or continue to be subject to the

PAL.

d. The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is

part of the PAL major modification becomes operational and begins to emit the PAL pollutant.

2. The Director shall calculate the new PAL level as the sum of the PAL allowable emissions for each modified or new

emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units (assuming

application of BACT or LAER equivalent controls as determined in accordance with subsection (J)(1)(b), plus the

sum of the baseline actual emissions of the small emissions units.

3. The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of subsection (D).

K. Monitoring requirements for PALs.

1. General requirements.

a. Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines

plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized

for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for

data quality and manipulation. Additionally, the information generated by such system must meet minimum legal

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requirements for admissibility in a judicial proceeding to enforce the PAL permit.

b. The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the

minimum requirements set forth in subsections (K)(2)(a) through (d) and must be approved by the Director.

c. Notwithstanding subsection (K)(1)(b), the owner or operator may also employ an alternative monitoring

approach if approved by the Director as meeting the requirements of subsection (K)(1)(a).

d. Failure to use a monitoring system that meets the requirements of this Section renders the PAL invalid.

2. Minimum performance requirements for approved monitoring approaches. The following are acceptable general

monitoring approaches when conducted in accordance with the minimum requirements in subsections (K)(3) through

(9):

a. Mass balance calculations for activities using coatings or solvents,

b. CEMS,

c. CPMS or PEMS, and

d. Emission factors.

3. Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions

from activities using coating or solvents shall meet the following requirements:

a. Provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or

created by all materials used in or at the emissions unit;

b. Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material

or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and

c. Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant

content from such material, the owner or operator must use the highest value of the range to calculate the PAL

pollutant emissions unless the Director determines there is site-specific data or a site-specific monitoring program to support another content within the range.

4. CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements:

a. CEMS must comply with applicable Performance Specifications found in 40 CFR 60, Appendix B; and

b. CEMS must sample, analyze and record data at least every 15 minutes while the emissions unit is operating.

5. CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements:

a. The CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the

monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and

b. Each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent

interval approved by the Director, while the emissions unit is operating.

6. Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements:

a. All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the

factors’ development;

b. The emissions unit shall operate within the designated range of use for the emission factor, if applicable; and

c. If technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to

calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor

within six months of PAL permit issuance, unless the Director determines that testing is not required.

7. A source owner or operator must record and report maximum potential emissions without considering enforceable

emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit.

8. Notwithstanding the requirements in subsections (K)(3) through (7), where an owner or operator of an emissions unit

cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all

operating points of the emissions unit, the Director shall, at the time of permit issuance:

a. Establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s), or

b. Determine that operation of the emissions unit during operating conditions when there is no correlation between

monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL.

9. Re-validation. All data used to establish the PAL pollutant must be re-validated through performance testing or other

scientifically valid means approved by the Director. Such testing must occur at least once every five years after issuance of the PAL.

L. Recordkeeping requirements.

1. The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance

with any requirement of this Section and with the PAL, including a determination of each emissions unit’s 12-month

rolling total emissions, for five years from the date of such record.

2. The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the

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PAL effective period plus five years:

a. A copy of the PAL permit application and any applications for revisions to the PAL, and

b. Each annual certification of compliance pursuant to R18-2-309(2) and the data relied on in certifying compliance.

M. Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt

deviation reports to the Director in accordance with R18-2-306(A)(5). The reports shall meet the following requirements:

1. Semi-annual report. The semi-annual report shall be submitted to the Director within 30 days of the end of each

reporting period. This report shall contain the following information:

a. The identification of owner and operator and the permit number.

b. Total annual emissions (tons/year) based on a 12-month rolling total for each month in the reporting period

recorded pursuant to subsection (L)(1).

c. All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating

the monthly and annual PAL pollutant emissions.

d. A list of any emissions units modified or added to the major source during the preceding six-month period.

e. The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated

with zero and span calibration checks), and any corrective action taken.

f. A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the

reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced

with another monitoring system, and whether the emissions unit monitored by the monitoring system continued

to operate, and the calculation of the emissions of the pollutant or the number determined by method included in

the permit, as provided by subsection (K)(7).

g. A certification by the responsible official consistent with R18-2-304(H).

2. Deviation report. The major source owner or operator shall promptly submit reports of any deviations or exceedance

of the PAL permit requirements, including periods where no monitoring is available, in accordance with R18-2-

306(A)(5). The reports shall contain the following information:

a. The identification of owner and operator and the permit number,

b. The PAL permit requirement that experienced the deviation or that was exceeded,

c. Emissions resulting from the deviation or the exceedance, and

d. A certification by the responsible official consistent with R18-2-304(H).

3. Re-validation results. The owner or operator shall submit to the Director the results of any re-validation test or

method within three months after completion of such test or method.

ARTICLE 5. GEERAL PERMITS

R18-2-502. General Permit Development

A. The Director may issue a general permit on the Director’s own initiative or in response to a petition.

B. Any person may submit a petition to the Director requesting the issuance of a general permit for a defined class of facilities. The petition shall propose a particular class of facilities, and list the approximate number of facilities in the proposed

class along with their size, processes, and operating conditions, and demonstrate how the class meets the criteria for a general permit as specified in R18-2-501 and A.R.S. § 49-426(H). The Director shall provide a written response to the petition within 120 days of receipt.

C. General permits shall be issued or denied for classes of facilities using the same engineering principles that applies to permits for individual sources and following the public notice requirements of R18-2-504.

D. General permits shall include all of the following:

1. All elements contained in R18-2-306(A) except (2)(b) R18-2-306(A)(2)(b) and (6).

2. The process for individual sources to apply for coverage under the general permit.

E. General permits developed by the Director shall require sources that are covered under the general permit to install and

operate reasonably available control technology for any regulated Minor NSR pollutants allowed under the general permit

at an amount equal to or greater than the permitting exemption threshold. This requirement shall not apply to any pollutants subject to an emissions standard established or revised by the Administrator under section 111 or 112 of the Act after

November 15, 1990.

R18-2-503. Application for Coverage under General Permit

A. Once the Director has issued a general permit, any source which is a member of the class of facilities covered by the general permit may apply to the Director for authority to operate under the general permit. At the time the Director issues a

general permit, the Director may also establish a specific application form with filing instructions for sources in the category covered by the general permit. Applicants shall complete the specific application form or, if none has been adopted,

the standard application form contained in Appendix 1 to this Chapter. The specific application form shall, at a minimum,

require the applicant to submit the following information:

1. Information identifying and describing the source, its processes, and operating conditions in sufficient detail to allow

the Director to determine qualification for, and to assure compliance with, the general permit.

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2. A compliance plan that meets the requirements of R18-2-309.

B. For sources required to obtain a permit under Title V of the Act, the Director shall provide the Administrator with a permit

application summary form and any relevant portion of the permit application and compliance plan. To the extent possible,

this information shall be provided in computer-readable format compatible with the Administrator’s national database

management system.

C. The Director shall act on the application for coverage under the a general permit as expeditiously as possible, but a final

decision shall be reached within 180 days. The source may operate under the terms of its application the applicable general permit during that time. If the application for coverage is denied, the Director shall notify the source that it shall apply

for an individual permit within 180 days of receipt of notice. The Director may defer acting on an application under this

subsection (if) the Director has provided notice of intent to renew or not renew the permit.

D. The Director shall deny an application for coverage from any Class I source that is subject to case-by-case standards or

requirements.

R18-2-505. General Permit Renewal

A. The Director shall review and may renew general permits every five years. A source’s authorization to operate under a

general permit shall coincide with the term of the general permit regardless of when the authorization began during the

five-year period, except as provided in R18-2-510(C). In addition to the public notice required to issue a proposed permit

under R18-2-504, the Director shall notify in writing all sources who have been granted, or who have applications pending for, authorization to operate under the permit. The written notice shall describe the source’s duty to reapply and may

include requests for information required under the proposed permit.

B. At the time a general permit is renewed, the Director shall notify in writing all sources who were granted coverage under

the previous permit and shall require them to submit a timely renewal application. For purposes of general permits, a

timely application is one that is submitted within the time-frame specified by the Director in the written notification. Until

such time that a timely application is submitted, the source shall continue to comply with the previously issued general

permit coverage. Upon submittal of a timely application, the source shall comply with the renewed permit. Failure to submit a timely application terminates the source’s right to operate.12

R18-2-512. Changes to Facilities Granted Coverage under General Permits

A. This Section applies to changes made at a facility that has been granted coverage under a general permit.

B. Facility Changes that Require New Authorization to Operate. The following changes at a source that has been granted

coverage under a general permit shall be made only after the source requests new authorization to operate from the Director:

1. Adding new emissions units that require new authorization to operate,

2. Installing replacement emissions units that require authorization to operate.

C. Facility Changes that Do Not Require Authorization to Operate. The following changes at a source that has been granted

coverage under a general permit shall be made only after the source provides written notification to the Department:

1. Adding new emissions units that do not require authorization to operate,

2. Installing a replacement emissions unit with a higher capacity that does not require authorization to operate,

3. Adding or replacing air pollution control equipment.

D. A source that has been granted coverage under a general permit shall keep a record of any physical change or change in

the method of operation that could affect emissions. The record shall include a description of the change and the date the

change occurred.

E. For sources that submit a request or notification under subsection (B) or (C), the applicant shall provide information identifying and describing the source, its processes, and operating conditions in sufficient detail to allow the Director to determine continued qualification for, and to assure compliance with, the general permit. The Director shall act on a request for

new authority to operate under a general permit as expeditiously as possible. The source may operate under the terms of

the applicable general permit during that time.

R18-2-513. Portable Sources Covered under a General Permit

A. This Section applies to sources that have been granted coverage under a general permit that allows for the operation of a

source at more than one location.

B. General permits developed by the Director for portable sources shall contain conditions that will assure compliance with

all applicable requirements at all authorized locations.

C. Owners and operators that hold multiple coverages under the same general permit may interchange equipment between

sources without obtaining new authorization to operate. At no time shall an owner or operator interchange equipment that

would cause the combined facility to exceed emission limitations in the general permit. Equipment covered under different general permits shall not be interchanged except that a new authorization to operate is obtained in accordance with this

Article.

D. Owners and operators that operate multiple portable sources under a general permit shall have an equivalent number of

coverages under a general permit as the number of locations at which each portable source operates.

E. A portable source that will operate for the duration of its permit solely in one county that has established a local air polluAPPENDIX A - NFRM
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tion control program pursuant to A.R.S. § 49-479 shall obtain a permit from that county. A portable source with a county

permit shall not operate in any other county. A portable source that has been granted coverage under a general permit that

subsequently obtains a county permit shall request that the Director terminate the coverage under the general permit.

Upon issuance of the county permit, the coverage under the general permit issued by the Director is no longer valid.

F. A portable source which has a county permit but proposes to operate outside that county may obtain coverage under a

general permit from the Director. A portable source that has a permit issued by a county and obtains coverage under a general permit issued by the Director shall request that the county terminate the permit. Upon issuance of coverage under a

general permit by the Director, the county permit is no longer valid. Before commencing operation in the new county, the

source shall notify the Director and the control officer who has jurisdiction in the county that includes the new location

according to subsection (G).

G. A portable source granted coverage under a general permit may be transferred from one location to another provided that

the owner or operator of such equipment notifies the Director and any control officer who has jurisdiction over the geographic area that includes the new location of the transfer prior to the transfer. The notification required under this subsection shall include:

1. A description of the equipment to be transferred including the permit number and as appropriate the Authorization-toOperate number for each piece of equipment;

2. A description of the present location;

3. A description of the location to which the equipment is to be transferred, including the availability of all utilities, such

as water and electricity, necessary for the proper operation of all control equipment;

4. The date on which the equipment is to be moved;

5. The date on which operation of the equipment will begin at the new location;

6. A complete equipment list of all equipment that will be located at the new location; and

7. Revised emissions calculations demonstrating that the equipment at the new location continues to qualify for the general permit under which the source has coverage.

ARTICLE 6. EMISSIOS FROM EXISTIG AD EW OPOIT SOURCES

R18-2-614. Evaluation of onpoint Source Emissions

Opacity of an emission from any nonpoint source shall not be greater than 40% measured according to the Arizona Testing

Manual 40 CFR 60, Appendix A, Reference Method 9. An open fire permitted under R18-2-602 or regulated under Article 15

is exempt from this requirement.

ARTICLE 7. EXISTIG STATIOARY SOURCE PERFORMACE STADARDS

R18-2-701. Definitions

For purposes of this Article:

1. “Acid mist” means sulfuric acid mist as measured in the Arizona Testing Manual and 40 CFR 60, Appendix A.

2. “Architectural coating” means a coating used commercially or industrially for residential, commercial or industrial

buildings and their appurtenances, structural steel, and other fabrications such as storage tanks, bridges, beams and

girders.

3. “Asphalt concrete plant” means any facility used to manufacture asphalt concrete by heating and drying aggregate

and mixing with asphalt cements. This is limited to facilities, including drum dryer plants that introduce asphalt into

the dryer, which employ two or more of the following processes:

a. A dryer.

b. Systems for screening, handling, storing, and weighing hot aggregate.

c. Systems for loading, transferring, and storing mineral filler.

d. Systems for mixing asphalt concrete.

e. The loading, transferring, and storage systems associated with emission control systems.

4. “Black liquor” means waste liquor from the brown stock washer and spent cooking liquor which have been concentrated in the multiple-effect evaporator system.

5. “Boiler” means an enclosed fossil- or other fuel-fired combustion device used to produce heat and to transfer heat to

recirculating water, steam, or other medium.

6. “Bottoming-cycle cogeneration unit” means a cogeneration unit in which the energy input to the unit is first used to

produce useful thermal energy and at least some of the reject heat from the useful thermal energy application or process is then used for electricity production.

7. “Calcine” means the solid materials produced by a lime plant.

8. “Coal” means any solid fuel classified as anthracite, bituminous, subbituminous, or lignite by the ASTM Standard

Specification for Classification of Coals by Rank D388-77, 90, 91, 95, or 98a.

9. “Coal-derived fuel” means any fuel (whether in a solid, liquid, or gaseous state) produced by the mechanical, thermal

or chemical processing of coal.

10. “Coal-fired” means combusting any amount of coal or coal-derived fuel, alone or in combination with any amount of

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any other fuel, during any year.

11. “Cogeneration unit” means a stationary coal-fired boiler or stationary coal-fired combustion turbine:

a. Having equipment used to produce electricity and useful thermal energy for industrial, commercial, heating, or

cooling purposes through the sequential use of energy; and

b. Producing during the 12-month period starting on the date the unit first produces electricity and during any calendar year after which the unit first produces electricity:

i. For a topping-cycle cogeneration unit: useful thermal energy not less than five percent 5% of total energy

output; and useful power that, when added to one-half of useful thermal energy produced, is not less than

42.5 percent 42.5% of total energy input, if useful thermal energy produced is 15 percent 15% or more of

total energy output, or not less than 45 percent 45% of total energy input, if useful thermal energy produced

is less than 15 percent 15% of total energy output; and

ii. For a bottoming-cycle cogeneration unit, useful power not less than 45 percent 45% of total energy input.

12. “Combustion turbine” means:

a. An enclosed device comprising a compressor, a combustor, and a turbine and in which the flue gas resulting from

the combustion of fuel in the combustor passes through the turbine, rotating the turbine; and

b. If the enclosed device under subsection (a) (12)(a) is combined cycle, any associated heat recovery steam generator and steam turbine.

13. “Commercial operation” means the time when the owner or operator supplies electricity for sale or use, including test

generation.

14. “Concentrate” means enriched copper ore recovered from the froth flotation process.

15. “Concentrate dryer” means any facility in which a copper sulfide ore concentrate charge is heated in the presence of

air to eliminate a portion of the moisture from the charge, provided less than five percent 5% of the sulfur contained

in the charge is eliminated in the facility.

16. “Concentrate roaster” means any facility in which a copper sulfide ore concentrate is heated in the presence of air to

eliminate five percent 5% or more of the sulfur contained in the charge.

17. “Condensate stripper system” means a column, and associated condensers, used to strip, with air or steam, TRS compounds from condensate streams from various processes within a kraft pulp mill.

18. “Control device” means the air pollution control equipment used to remove particulate matter or gases generated by a

process source from the effluent gas stream.

19. “Converter” means any vessel to which copper matte is charged and oxidized to copper.

20. “Electric generating plant” means all electric generating units located at a stationary source.

21. “Electric generating unit” means:

a. A stationary, coal-fired boiler or stationary coal-fired combustion turbine, other than a boiler or turbine that qualifies as a cogeneration unit, serving at any time since the start-up of a unit’s combustion chamber a generator

with nameplate capacity of more than 25 megawatts electric producing electricity for sale. If a unit qualifies as a

cogeneration unit during the 12-month period starting the date the unit first produces electricity but subsequently

no longer qualifies as a cogeneration unit, the unit shall be an electric generating unit on the day which the unit

no longer qualifies as a cogeneration unit.

b. A cogeneration unit serving at any time a generator with nameplate capacity of more than 25 megawatts and supplying in any calendar year more than one-third of the unit’s potential electric output capacity or 219,000 megawatt-hours, whichever is greater, to any utility power distribution system for sale.

22. “Existing electric generating plant” means all electric generating units located at a stationary source during a control

period other than units that have not been allocated allowances to emit mercury pursuant to 40 CFR 60.4142(b) for

that control period.

23. “Existing source” means any source which does not have an applicable new source performance standard under Article 9 of this Chapter.

23.24. “Facility” means an identifiable piece of stationary process equipment along with all associated air pollution equipment.

24.25. “Fugitive dust” means fugitive emissions of particulate matter.

25.26. “High sulfur oil” means fuel oil containing 0.90% or more by weight of sulfur.

26.27. “Incremental best available control technology” means an emission limitation based on the maximum degree of

additional reductions, if any, in mercury beyond those achieved by existing controls installed under R18-2-724(F),

taking into account incremental energy, environmental, and economic impacts, market prices of mercury allowances,

balance of plant impacts, and other incremental costs, determined by the Director to be achievable and to be compatible with existing control technology installed at the electric generating unit. Incremental best available control technology shall be determined on a case-by-case basis and shall not be more stringent than the limits in R18-2-734(B).

27.28. “Inlet mercury” means the average concentration of mercury in the coal burned at an electric generating unit, as

determined by ASTM methods, EPA-approved methods or alternative methods approved by the Director.

28.29. “Lime kiln” means a unit used to calcinate lime rock or kraft pulp mill lime mud, which consists primarily of calAPPENDIX A - NFRM
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cium carbonate, into quicklime, which is calcium oxide.

29.30. “Low sulfur oil” means fuel oil containing less than 0.90% by weight of sulfur.

30.31. “Matte” means a metallic sulfide made by smelting copper sulfide ore concentrate or the roasted product of copper

sulfide ores.

31.32. “Mercury” means mercury or mercury compounds in either a gaseous or particulate form.

32.33. “Miscellaneous metal parts and products” for purposes of industrial coating include all of the following:

a. Large farm machinery, such as harvesting, fertilizing and planting machines, tractors, and combines;

b. “Small farm machinery, such as lawn and garden tractors, lawn mowers, and rototillers;

c. Small appliances, such as fans, mixers, blenders, crock pots, dehumidifiers, and vacuum cleaners;

d. Commercial machinery, such as office equipment, computers and auxiliary equipment, typewriters, calculators,

and vending machines;

e. Industrial machinery, such as pumps, compressors, conveyor components, fans, blowers, and transformers;

f. Fabricated metal products, such as metal-covered doors and frames;

g. Any other industrial category which coats metal parts or products under the Code in the “Standard Industrial

Classification Manual, 1987” of Major Group 33 (primary metal industries), Major Group 34 (fabricated metal

products), Major Group 35 (non-electric machinery), Major Group 36 (electrical machinery), Major Group 37

(transportation equipment), Major Group 38 (miscellaneous instruments), and Major Group 39 (miscellaneous

manufacturing industries), except all of the following:

i. Automobiles and light-duty trucks;

ii. Metal cans;

iii. Flat metal sheets and strips in the form of rolls or coils;

iv. Magnet wire for use in electrical machinery;

v. Metal furniture;

vi. Large appliances;

vii. Exterior of airplanes;

viii. Automobile refinishing;

ix. Customized top coating of automobiles and trucks, if production is less than 35 vehicles per day;

x. Exterior of marine vessels.

33.34. “Multiple-effect evaporator system” means the multiple-effect evaporators and associated condenser and hotwell

used to concentrate the spent cooking liquid that is separated from the pulp.

34.35. “Nameplate capacity” means, starting from the initial installation of a generator, the maximum electrical generating

output (in megawatts) that an electric generating unit is capable of producing on a steady-state basis during continuous operation as specified by the manufacturer.

35.36. “Neutral sulfite semichemical pulping” means any operation in which pulp is produced from wood by cooking or

digesting wood chips in a solution of sodium sulfite and sodium bicarbonate, followed by mechanical defibrating or

grinding.

36.37. “Petroleum liquids” means petroleum, condensate, and any finished or intermediate products manufactured in a

petroleum refinery but does not mean Number 2 through Number 6 fuel oils as specified in ASTM D-396-90a D396-

90a (Specification for Fuel Oils), gas turbine fuel oils Numbers 2-GT through 4-GT as specified in ASTM D-2880-

90a D2880-90a (Specification for Gas Turbine Fuel Oils), or diesel fuel oils Numbers 2-D and 4-D as specified in

ASTM D-975-90 D975-90 (Specification for Diesel Fuel Oils).

37.38. “Potential electric output capacity” means 33 percent 33% of a unit’s maximum design heat input, divided by 3,413

Btu per kilowatt-hour, divided by 1,000 kilowatt-hours/per megawatt-hour, and multiplied by 8,760 hours per year.

38.39. “Process source” means the last operation or process which produces an air contaminant resulting from either:

a. The separation of the air contaminants from the process material, or

b. The conversion of constituents of the process materials into air contaminants which is not an air pollution abatement operation.

39.40. “Process weight” means the total weight of all materials introduced into a process source, including fuels,

where these contribute to pollution generated by the process.

40.41. “Process weight rate” means a rate established pursuant to R18-2-702(E).

41.42. “Recovery furnace” means the unit, including the direct-contact evaporator for a conventional furnace, used

for burning black liquor to recover chemicals consisting primarily of sodium carbonate and sodium sulfide. 

42.43. “Reid vapor pressure” means the absolute vapor pressure of volatile crude oil and volatile non-viscous petroleum liquids, except liquified petroleum gases, as determined by ASTM D-323-90 (Test Method for Vapor Pressure of Petroleum Products) (Reid Method).

43.44. “Reverbatory smelting furnace” means any vessel in which the smelting of copper sulfide ore concentrates or

calcines is performed and in which the heat necessary for smelting is provided primarily by combustion of a fossil fuel.

44.45. “Rotary lime kiln” means a unit with an included rotary drum which is used to produce a lime product from

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limestone by calcination.

45.46. “Slag” means fused and vitrified matter separated during the reduction of a metal from its ore.

46.47. “Smelt dissolving tank” means a vessel used for dissolving the smelt collected from the kraft mill recovery furnace.

47.48. “Smelter feed” means all materials utilized in the operation of a copper smelter, including metals or concentrates, fuels and chemical reagents, calculated as the aggregate sulfur content of all fuels and other feed materials

whose products of combustion and gaseous by-products are emitted to the atmosphere.

48.49. “Smelting” means processing techniques for the smelting of a copper sulfide ore concentrate or calcine charge

leading to the formation of separate layers of molten slag, molten copper, or copper matte.

49.50. “Smelting furnace” means any vessel in which the smelting of copper sulfide ore concentrates or calcines is

performed and in which the heat necessary for smelting is provided by an electric current, rapid oxidation of a

portion of the sulfur contained in the concentrate as it passes through an oxidizing atmosphere, or the combustion

of a fossil fuel.

50.51. “Standard conditions” means a temperature of 293K (68° F or 20° C) and a pressure of 101.3 kilopascals

(29.92 in. Hg or 1013.25 mb).

51.52. “Supplementary control system” (SCS) means a system by which sulfur dioxide emissions are curtailed during

periods when meteorological conditions conducive to ground-level concentrations in excess of ambient air quality standards for sulfur dioxide either exist or are anticipated.

52.53. “Topping-cycle cogeneration unit” means a cogeneration unit in which the energy input to the unit is first used

to produce useful power, including electricity, and at least some of the reject heat from the electricity production

is then used to provide useful thermal energy.

53.54. “Total energy output” means, with regard to a cogeneration unit, the sum of useful power and useful thermal

energy produced by the cogeneration unit.

54.55. “Vapor pressure” means the pressure exerted by the gaseous form of a substance in equilibrium with its liquid

or solid form.

R18-2-719. Standards of Performance for Existing Stationary Rotating Machinery

A. The provisions of this Section are applicable to the following affected facilities: all stationary gas turbines, oil-fired turbines, or internal combustion engines. This Section also applies to an installation operated for the purpose of producing

electric or mechanical power with a resulting discharge of sulfur dioxide in the installation’s effluent gases.

B. For purposes of this Section, the heat input shall be the aggregate heat content of all fuels whose products of combustion

pass through a stack or other outlet. Compliance tests shall be conducted during operation at the normal rated capacity of

each unit. The total heat input of all operating fuel-burning units on a plant or premises shall be used for determining the

maximum allowable amount of particulate matter which may be emitted.

C. No person shall cause, allow or permit the emission of particulate matter, caused by combustion of fuel, from any stationary rotating machinery in excess of the amounts calculated by one of the following equations:

1. For equipment having a heat input rate of 4200 million Btu per hour or less, the maximum allowable emissions shall

be determined by the following equation:

E = 1.02Q0.769

where:

E = the maximum allowable particulate emissions rate in pounds-mass per hour.

Q = the heat input in million Btu per hour.

2. For equipment having a heat input rate greater than 4200 million Btu/hr., the maximum allowable emissions shall be

determined by the following equation:

E = 17.0Q0.432

where “E” and “Q” have the same meaning as in subsection (C)(1).

D. For reference purposes only, the two equations in subsection (C) are plotted in Appendix 11, Figure 1. The emission values obtained from the graph are approximately correct for the heat input rates shown. However, the actual values shall be

calculated from the applicable equations and rounded off to two decimal places.

E. No person shall cause, allow or permit to be emitted into the atmosphere from any stationary rotating machinery, smoke

for any period greater than 10 consecutive seconds which exceeds 40% opacity. Visible emissions when starting cold

equipment shall be exempt from this requirement for the first 10 minutes.

F. When low sulfur oil is fires fired, stationary rotating machinery installations shall burn fuel which limits the emission of

sulfur dioxide to 1.0 pound per million Btu heat input.

G. When high sulfur oil is fired, stationary rotating machinery installations shall not emit more than 2.2 pounds of sulfur

dioxide per million Btu heat input.

H. Any permit issued for the operation of an existing source, or any renewal or modification of such a permit, shall include a

condition prohibiting the use of high sulfur oil by the permittee. This condition may not be included in the permit if the

applicant demonstrates to the satisfaction of the Director both that sufficient quantities of low sulfur oil are not available

for use by the source and that it has adequate facilities and contingency plans to ensure that the sulfur dioxide ambient air

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quality standards set forth in R18-2-202 will not be violated. 

1. The terms of the permit may authorize the use of high sulfur oil under such conditions as are justified. 

2. In cases where the permittee is authorized to use high sulfur oil, it shall submit to the Department monthly reports

detailing its efforts to obtain low sulfur oil. 

3. When the conditions justifying the use of high sulfur oil no longer exist, the permit shall be modified accordingly. 

4. Nothing in this Section shall be construed as allowing the use of a supplementary control system or other form of dispersion technology.

I. The owner or operator of any stationary rotating machinery subject to the provisions of this Section shall record daily the

sulfur content and lower heating value of the fuel being fired in the machine.

J. The owner or operator of any stationary rotating machinery subject to the provisions of this Section shall report to the

Director any daily period during which the sulfur content of the fuel being fired in the machine exceeds 0.8%.

K. The test methods and procedures required by this Section are as follows:

1. To determine compliance with the standards prescribed in subsections (C) through (H), the following reference methods shall be used:

a. Reference Method 20 in 40 CFR 60, Appendix A for the concentration of sulfur dioxide and oxygen.

b. ASTM Method D-129-91 D129-91 (Test Method for Sulfur in Petroleum Products) (General Bomb Method) for

the sulfur content of liquid fuels.

c. ASTM Method D-1072-90 D1072-90 (Test Method for Total Sulfur in Fuel Gases for the sulfur content of gaseous fuels. 

2. To determine compliance with the standards prescribed in subsection (J), the following reference methods in the Arizona Testing Manual shall be used:

a. ASTM Method D-129-91 D129-91 (Test Method for Sulfur in Petroleum Products) (General Bomb Method) for

the sulfur content of liquid fuels.

b. ASTM Method D-1072-90 D1072-90 (Test Method for Total Sulfur in Fuel Gases) for the sulfur content of gaseous fuels.

APPENDIX A - NFRM
Arizona State Legislature Bill Number Search: 

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49-426. Permits; duties of director; exceptions; applications; objections; fees

A. A permit shall:

1. Be issued by the director in compliance with the terms of this section.

2. Be required for any person seeking a compliance extension pursuant to section

49-426.03, subsection B, paragraph 3 and section 112(a)(5) of the clean air act and

for any person beginning actual construction of or operating any source, except as

prescribed in subsection B of this section or section 49-426.01.

B. The provisions of this section shall not apply to motor vehicles, to agricultural

vehicles or agricultural equipment used in normal farm operations, or to fuel burning

equipment which, at a location or property other than a one or two family residence,

is rated at less than one million British thermal units per hour. The director may

establish by rule additional sources or classifications of sources for which a permit is

not required and pollutant-emitting activities and emissions units at permitted

sources that are not required to be included in the permit. The director shall not

adopt such rules unless the director makes a written finding with supporting facts

that the exempted source, class of sources, pollutant-emitting activities or emissions

units will have an insignificant adverse impact on air quality. In adopting these rules,

the director may consider any rule that is adopted by the administrator pursuant to

section 502 of the clean air act and that exempts one or more source categories

from the requirement to obtain a permit under title V of the clean air act.

C. Every application for a permit shall be filed in the manner and form prescribed by

the director, and shall contain all the information necessary to enable the director to

make the determination to grant or deny such application. The director shall

establish by rule requirements for permit applications, including the standard

application form for title V sources. The director shall establish by rule requirements

for applications for general permits. An application for a permit issued pursuant to

title V of the clean air act shall include a compliance plan that describes how the

applicant will comply with all of the applicable requirements of this chapter and the

clean air act, including a schedule of compliance and a schedule under which

progress reports will be submitted to the director at least every six months. The

director may require that such application include all sources that are used or to be

used by the applicant in a certain process or a single facility or location. Before acting

on an application for a permit, the director may require the applicant to furnish

further information or further plans or specifications. The director shall act, within a

reasonable time, on such application and shall notify the applicant in writing of the

proposed approval or denial of such application, except that the director may have a

reasonable period of time in which to gather information, inspect premises, and issue

such permits. The director shall adopt rules that establish procedures for determining

when applications are complete, for processing applications and for reviewing permit

actions. The director shall also establish by rule criteria for determining reasonable

times for processing permit applications. Rules adopted pursuant to this subsection

for permits issued pursuant to title V of the clean air act shall conform to the

requirements of section 505(a) of the clean air act.

D. The director shall give notice of a proposed permit for a source required to obtain

a permit pursuant to title V of the clean air act once each week for two consecutive

weeks in two newspapers of general circulation in the county in which the source is

or will be located. The notice shall describe the proposed permit and air contaminants

to be emitted and shall state that any person may submit comments on the proposed

permit and may request a public hearing. The director shall require the applicant at

the time of the first notice to post the site where the source is or may be located. If

permitted by federal, state and local law, the posting shall be prominently placed at a

site that is under the applicant's legal control and that is adjacent to the nearest

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public roadway. The posting shall be visible to the public using the public roadway

and shall contain the information in the notice that is published by the director. If a

public hearing is requested, the director shall require the applicant to place an

additional posting that provides notice of the public hearing. A posting shall be

maintained until the public comment period on the proposed permit is closed. The

director shall make available to the public notices of proposed permits. Each public

notice that is issued under this chapter shall be mailed to the permit applicant, to the

affected federal, state and local agencies and to those persons who have requested

in writing copies of proposed permit action notices. During the public comment

period, any person may submit a request to the department to conduct a public

hearing for the purpose of receiving oral or written comments on the proposed

permit. A written comment shall state the name and mailing address of the person,

shall be signed by the person, his agent or his attorney and shall clearly set forth

reasons why the permit should or should not be issued. Grounds for comment are

limited to whether the proposed permit meets the criteria for issuance prescribed in

this section or in section 49-427. The department shall consider and prepare written

responses to all comments received during the public comment period including

comments made at a public hearing conducted by the department. At the time a final

permit decision is made, copies of the department's responses shall be made

available to the applicant and any person who commented on the proposed permit.

E. Permits or revisions issued pursuant to this section or section 49-426.01 may be

issued subject to such terms and conditions as are consistent with the requirements

of this article, article 1 of this chapter and the clean air act and are found by the

director to be necessary, following public notice and an opportunity for a public

hearing as provided in subsection D or H of this section or in section 49-426.01, and

subject to payment of a reasonable fee to be determined as follows:

1. For a source that is required to obtain a permit pursuant to title V of the clean air

act, the director shall establish by rule a system of fees that is consistent with and

equivalent to that prescribed by section 502 of the clean air act. These rules shall

prescribe procedures for increasing the fee each year by the percentage if any by

which the consumer price index for the immediately preceding calendar year exceeds

the consumer price index for calendar year 1989.

2. For a facility that is required to obtain a permit pursuant to this chapter but that is

not required to obtain a permit pursuant to title V of the clean air act, the director

shall determine a fee based on the total actual cost of processing the permit

application, but not exceeding twenty-five thousand dollars.

The director shall establish an annual inspection fee, not to exceed the average cost

of inspection. The director shall adopt, by rule, criteria for determining fees and for

public hearings.

F. Permits issued pursuant to this section shall be issued for a period of five years.

G. Except as provided in subsection H of this section, any person burning used oil,

used oil fuel, hazardous waste or hazardous waste fuel in any machine, incinerator

or device shall first obtain a permit from the director. Any permit issued by the

director under this subsection shall contain, at a minimum, conditions governing:

1. Limitations on the types, amounts and feed rates of used oil, used oil fuel,

hazardous waste or hazardous waste fuel which may be burned.

2. The frequency and types of fuel testing to be conducted by the person.

3. The frequency and type of emissions testing or monitoring to be conducted by the

person.

4. Requirements for record keeping and reporting.

5. Numeric emission limitations expressed in pounds per hour and tons per year for

air contaminants to be emitted from the facility burning off-specification used oil fuel,

hazardous waste or hazardous waste fuel.

H. The director may issue a general permit for a defined class of facilities if the class

contains a large number of facilities that are substantially similar in nature and that

have substantially similar emissions and if the following conditions are met:

1. A general permit shall comply with all of the requirements for permits prescribed

by this section except for the requirements of subsection D of this section and shall

be consistent with the clean air act.

2. The director shall give notice of the proposed general permit once each week for

two consecutive weeks in a newspaper of general circulation in each county. The

notice shall describe the proposed general permit, the general class of sources that

would be subject to the proposed permit and the air contaminants to be emitted. The

notice shall also state that any person may submit comments on the proposed

general permit and may request a public hearing. A written comment shall state the

name of the person and the person's agent or attorney and shall clearly set forth

reasons why the general permit should or should not be issued. Grounds for

comment are limited to whether the proposed general permit meets the criteria for

issuance prescribed in this section or section 49-427.

3. On issuance of a general permit any person seeking to permit a source under this

subsection shall submit an application pursuant to subsection C of this section.

4. If the director approves an application to be permitted under a general permit, the

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director shall provide notice of the approval in a newspaper of general circulation in

the county in which the source is or will be located.

5. If a person violates a general permit, the director may require the source to

obtain a permit pursuant to subsection A of this section.

6. A general permit may be revoked or revised at any time by the director if

necessary to comply with this chapter. If the director revokes or revises a general

permit, the director shall notify all persons whose sources are affected by the

revocation or revision and shall include notice of procedures to obtain a permit

pursuant to subsection A of this section or notice of procedures for compliance with

the revisions.

7. The director by rule shall adopt procedures for the issuance of general permits.

8. The director may adopt conditions in a general permit applicable to sources

located in a specified geographic area either independently of or upon petition by a

county air pollution control officer.

I. Permits issued pursuant to this section for a source required to obtain a permit

under title V of the clean air act shall contain all of the following:

1. Conditions reflecting all applicable requirements of this article and rules adopted

pursuant to this article.

2. Enforceable emission limitations and standards.

3. A schedule for compliance, if applicable.

4. The requirement to submit at least every six months the results of any required

monitoring.

5. Any other conditions that are necessary to assure compliance with this article and

the clean air act, including the applicable implementation plan.

J. The director may refuse to issue any permit to any source subject to the

requirements of title V of the clean air act if the administrator objects to its issuance

in a timely manner as prescribed under title V of the act.

K. If an applicant has submitted a timely and complete application for a permit

required under this section, but final action has not been taken on that application,

failure to obtain a permit shall not be a violation of this chapter unless the delay in

final action is due to the failure of the applicant to submit information required or

requested to process the application. This subsection does not apply to any person

required to obtain a permit before commencing construction of a source as required

under this section or any person seeking a permit revision as provided under section

49-426.01.

L. The director may issue a single permit authorizing emissions from similar

operations at multiple temporary locations, if the permit includes conditions that will

assure compliance with all applicable requirements of this chapter and the clean air

act at all locations. Any permit issued pursuant to this subsection shall require the

applicant to notify the director in advance of each change in location. In issuing a

single permit, the director may require a separate permit fee for operations at each

location.

M. In the case of a permit with a term of three or more years issued pursuant to the

requirements of title V of the clean air act to a major source, the director shall

require revisions to the permit to incorporate applicable standards and regulations

adopted by the administrator pursuant to the clean air act after the issuance of the

permit. The director shall require any revisions as expeditiously as practicable, but

not later than eighteen months after the promulgation of such standards and

regulations. No permit revision shall be required if the effective date of standards

and regulations is after the expiration of the permit. Any permit revision required

pursuant to this subsection shall be treated as a permit renewal.

N. Any permit issued pursuant to the requirements of this article and title V of the

clean air act to a unit subject to the provisions of title IV of the clean air act shall

include conditions prohibiting all of the following:

1. Annual emissions of sulfur dioxide in excess of the number of allowances to emit

sulfur dioxide held by the owners or operators of the unit or by the designated

representative of the owners or operators.

2. Amounts in excess of applicable emission rates.

3. The use of any allowance prior to the year for which it was allocated.

4. Contravention of any other provision of the permit.

O. The director shall adopt a rule specifying the notice, public participation

requirements and other permit issuance procedures for permits that are not issued

pursuant to title V of the clean air act.

P. In determining whether a permitting threshold established pursuant to this section

applies to an existing source, the director shall exclude particulate matter that is not

subject to a national ambient air quality standard under the clean air act.

 ©2007 Arizona State Legislature. privacy statment 

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APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 17 Supp. 10-2

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective August 29, 1980 (Supp. 80-4). 

Amended by deleting subsections (B) through (D) effective September 22, 1983 (Supp. 83-5). Former Section 

R9-3-204 renumbered without change as Section R18-2-

204 (Supp. 87-3). Section R18-2-103 renumbered from 

R18-2-204 and amended effective September 26, 1990 

(Supp. 90-3). Amended by final rulemaking at 11 A.A.R. 

3305, effective October 3, 2005 (Supp. 05-3).

R18-2-204. Carbon monoxide

A. The primary ambient air quality standards for carbon monoxide are:

1. 9 parts per million (10 milligrams per cubic meter) --

maximum eight-hour concentration not to be exceeded

more than once per year.

2. 35 parts per million (40 milligrams per cubic meter) --

maximum one-hour concentration not to be exceeded

more than once per year.

B. An eight-hour average shall be considered valid if at least 75%

of the hourly averages for the eight-hour period are available.

In the event that only six or seven hourly averages are available, the eight-hour average shall be computed on the basis of

the hours available using 6 or 7 as the divisor.

C. When summarizing data for comparison with the standards,

averages shall be stated to one decimal place. Comparison of

the data with the levels of the standards in parts per million

shall be made in terms of integers with fractional parts of 0.5

or greater rounding up.

Historical Note

Amended effective December 22, 1976 (Supp. 76-5). 

Former Section R9-3-205 repealed, new Section R9-3-

205 adopted effective May 14, 1979 (Supp. 79-1). 

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective August 29, 1980 (Supp. 80-4). 

Amended by deleting subsections (B) through (D) effective September 22, 1983 (Supp. 83-5). Former Section 

R9-3-205 renumbered without change as Section R18-2-

205 (Supp. 87-3). Former Section R18-2-204 renumbered 

to R18-2-203, new Section R18-2-204 renumbered from 

R18-2-205 and amended effective September 26, 1990 

(Supp. 90-3).

R18-2-205. Nitrogen dioxide

A. The primary ambient air quality standard for nitrogen dioxide

is 0.053 parts per million (100 micrograms per cubic meter) --

annual arithmetic mean.

B. The secondary ambient air quality standard for nitrogen dioxide is 0.053 (parts per million (100 micrograms per cubic

meter) -- annual arithmetic mean.

C. The standards are attained when the annual arithmetic mean

concentration in a calendar year is less than or equal to 0.053

ppm, rounded to three decimal places, with fractional parts

equal to or greater than 0.0005 ppm rounded up. To demonstrate attainment, an annual mean shall be based upon hourly

data that is at last 75% complete or upon data derived from the

manual methods, that is at least 75% complete for the scheduled sampling days in each calendar quarter.

Historical Note

Amended effective December 22, 1976 (Supp. 76-5). 

Former Section R9-3-206 repealed, new Section R9-3-

206 adopted effective May 14, 1979 (Supp. 79-1). 

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective August 29, 1980 (Supp. 80-4). 

Amended by deleting subsections (B) through (D) effective September 22, 1983 (Supp. 83-5). Former Section 

R9-3-206 renumbered without change as Section R18-2-

206 (Supp. 87-3). Former Section R18-2-205 renumbered 

to R18-2-204, new Section R18-2-205 renumbered from 

R18-2-206 and amended effective September 26, 1990 

(Supp. 90-3).

R18-2-206. Lead

A. The primary ambient air quality standard for lead and its compounds, measured as elemental lead, is 1.5 micrograms per

cubic meter -- maximum arithmetic mean averaged over a calendar quarter.

B. The secondary ambient air quality standard for lead and its

compounds, measured as elemental lead, is 1.5 micrograms

per cubic meter -- maximum arithmetic mean averaged over a

calendar quarter.

Historical Note

Former Section R9-3-207 repealed effective May 14, 

1979 (Supp. 79-1). New Section R9-3-207 adopted effective October 2, 1979 (Supp. 79-5). Amended effective 

August 29, 1980 (Supp. 80-4). Amended by deleting subsections (B) through (D) effective September 22, 1983 

(Supp. 83-5). Former Section R9-3-207 renumbered 

without change as Section R18-2-207 (Supp. 87-3). 

Former Section R18-2-206 renumbered to R18-2-205, 

new Section R18-2-206 renumbered from R18-2-207 and 

amended effective September 26, 1990 (Supp. 90-3).

R18-2-207. Renumbered

Historical Note

Former Section R9-3-207 renumbered to R18-2-206 

effective September 26, 1990 (Supp. 90-3).

R18-2-208. Reserved

R18-2-209. Reserved

R18-2-210. Attainment, Nonattainment, and Unclassifiable

Area Designations

40 CFR 81.303 as amended as of July 1, 2006 (and no future

amendments or editions) is incorporated by reference as an applicable requirement and on file with the Department of Environmental

Quality. 40 CFR 81.303 is available from the U.S. Government

Printing Office, Superintendent of Documents, Mail Stop SSOP,

Washington, D.C. 20402-9328.

Historical Note

Adopted effective November 15, 1993 (Supp. 93-4). 

Amended effective December 7, 1995 (Supp. 95-4). 

Amended by final rulemaking at 5 A.A.R. 3221, effective 

August 12, 1999 (Supp. 99-3). Amended by final rulemaking at 8 A.A.R. 2543, effective May 24, 2002 (Supp. 

02-2). Amended by final rulemaking at 10 A.A.R. 3281, 

effective September 27, 2004 (Supp. 04-3). Amended by 

final rulemaking at 11 A.A.R. 3305, effective October 3, 

2005 (Supp. 05-3). Amended by final rulemaking at 13 

A.A.R. 4199, effective January 5, 2008 (Supp. 07-4).

R18-2-211. Reserved

R18-2-212. Reserved

R18-2-213. Reserved

R18-2-214. Reserved

R18-2-215. Ambient air quality monitoring methods and

procedures

A. Only those methods which have been either designated by the

Administrator as reference or equivalent methods or approved

by the Director shall be used to monitor ambient air.

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 18 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

B. Quality assurance, monitor siting, and sample probe installation procedures shall be in accordance with procedures

described in the Appendices to 40 CFR 58. 

C. The Director may approve other procedures upon a finding

that the proposed procedures are substantially equivalent or

superior to procedures in the Appendices to 40 CFR 58. 

Historical Note

Adopted effective September 22, 1983 (Supp. 83-5). 

Former Section R9-3-215 renumbered without change as 

Section R18-2-215 (Supp. 87-3). Amended effective September 26, 1990 (Supp. 90-3).

R18-2-216. Interpretation of Ambient Air Quality Standards

and Evaluation of Air Quality Data

Unless otherwise specified, interpretation of all ambient air quality

standards contained in this Article shall be in accordance with 40

CFR 50, incorporated by reference in Appendix 2 of this Chapter.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-216 repealed, new Section R9-3-216 

adopted effective August 29, 1980 (Supp. 80-4). Former 

Section R9-3-216 renumbered without change as Section 

R18-2-216 (Supp. 87-3). Amended effective September 

26, 1990 (Supp. 90-3). Amended by final rulemaking at 

15 A.A.R. 281, effective March 7, 2009 (Supp. 09-1).

R18-2-217. Designation and Classification of Attainment

Areas

A. All attainment and unclassified areas or parts thereof shall be

classified as either Class I, Class II or Class III.

B. All of the following areas which were in existence on August

7, 1977, including any boundary changes to those areas which

occurred subsequent to the date of enactment of the Clean Air

Act Amendments of 1977 and before March 12, 1993, shall be

Class I areas irrespective of attainment status and shall not be

redesignated:

1. International parks;

2. National wilderness areas which exceed 5,000 acres in

size;

3. National memorial parks which exceed 5,000 acres in

size; and

4. National parks which exceed 6,000 acres in size.

C. The following areas shall be designated only as Class I or II:

1. An area which as of August 7, 1977, exceeds 10,000

acres in size and is one of the following:

a. A national monument, 

b. A national primitive area, 

c. A national preserve, 

d. A national recreational area, 

e. A national wild and scenic river, 

f. A national wildlife refuge, 

g. A national lakeshore or seashore.

2. A national park or national wilderness area established

after August 7, 1977, which exceeds 10,000 acres in size.

D. All other areas shall be Class II areas unless redesignated

under subsections (E) or (F).

E. The Governor or the Governor’s designee may redesignate

areas of the state as Class I or Class II, provided that the following requirements are fulfilled:

1. At least one public hearing is held in or near the area

affected;

2. Other states, Indian governing bodies and Federal Land

Managers, whose land may be affected by the proposed

redesignation are notified at least 30 days prior to the

public hearing.

3. A discussion document of the reasons for the proposed

redesignation including a description and analysis of

health, environmental, economic, social and energy

effects of the proposed redesignation is prepared by the

Governor or the Governor’s designee. The discussion

document shall be made available for public inspection at

least 30 days prior to the hearing and the notice announcing the hearing shall contain appropriate notification of

the availability of such discussion document.

4. Prior to the issuance of notice respecting the redesignation of an area which includes any federal lands, the Governor or the Governor’s designee has provided written

notice to the appropriate Federal Land Manager and

afforded the Federal Land Manager adequate opportunity,

not in excess of 60 days, to confer with the state respecting the redesignation and to submit written comments and

recommendations. The Governor or the Governor’s designee shall publish a list of any inconsistency between

such redesignation and such recommendations, together

with the reasons for making such redesignation against

the recommendation of the Federal Land Manager, if any

Federal Land Manager has submitted written comments

and recommendations.

5. The redesignation is proposed after consultation with the

elected leadership of local governments in the area covered by the proposed redesignation.

6. The redesignation is submitted to the Administrator as a

revision to the SIP.

F. The Governor or the Governor’s designee may redesignate

areas of the state as Class III if all of the following criteria are

met:

1. Such redesignation meets the requirements of subsection

(E);

2. Such redesignation has been approved after consultation

with the appropriate committee of the legislature if it is in

session or with the leadership of the legislature if it is not

in session. 

3. The general purpose units of local government representing a majority of the residents of the area to be redesignated concur in the redesignation;

4. Such redesignation shall not cause, or contribute to, concentration of any air pollutant which exceeds any maximum allowable increase or maximum allowable

concentration permitted under the classification of any

area;

5. For any new major source as defined in R18-2-401 or a

major modification of such source which may be permitted to be constructed and operated only if the area in

question is redesignated as Class III, any permit application or related materials shall be made available for public inspection prior to a public hearing.

6. The redesignation is submitted to the Administrator as a

revision to the SIP.

G. A redesignation shall not be effective until approved by the

Administrator as part of an applicable implementation plan.

H. Lands within the exterior boundaries of Indian reservations

may be redesignated only by the appropriate Indian governing

body.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective October 2, 1979 (Supp. 79-5). Editorial correction, subsection (A), paragraph (5), subparagraph (d) 

(Supp. 80-2). Amended effective May 28, 1982 (Supp. 

82-3). Former Section R9-3-217 renumbered without 

change as Section R18-2-217 (Supp. 87-3). Amended and 

subsection (B) renumbered to Section R18-2-218 effecAPPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 26 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

2, 1979 (Supp. 79-5). Former Section R9-3-304 repealed, 

new Section R9-3-304 adopted effective May 28, 1982 

(Supp. 82-3). Former Section R9-3-304 renumbered without change as Section R18-2-304 (Supp. 87-3). Amended 

effective September 26, 1990 (Supp. 90-3). Section 

repealed, new Section adopted effective November 15, 

1993 (Supp. 93-4). Amended effective October 7, 1994 

(Supp. 94-4). Amended effective August 1, 1995 (Supp. 

95-3). The reference to R18-2-101(54) in subsection 

(E)(8) corrected to reference R18-2-101(57) (Supp. 99-3). 

Amended by final rulemaking at 6 A.A.R. 343, effective 

December 20, 1999 (Supp. 99-4). Amended by final rulemaking at 12 A.A.R. 1953, effective January 1, 2007 

(Supp. 06-2).

R18-2-305. Public Records; Confidentiality

A. The Director shall make all permits, including all elements

required to be in the permit pursuant to R18-2-306, available

to the public. No permit shall be issued unless the information

required by R18-2-306 is present in the permit.

B. A notice of confidentiality pursuant to A.R.S. § 49-432(C)

shall:

1. Precisely identify the information in the documents submitted which is considered confidential.

2. Contain sufficient supporting information to allow the

Director to evaluate whether such information satisfies

the requirements related to trade secrets or, if applicable,

how the information, if disclosed, is likely to cause substantial harm to the person’s competitive position.

C. Within 30 days of receipt of a notice of confidentiality that

complies with subsection (B) above, the Director shall make a

determination as to whether the information satisfies the

requirements for trade secret or competitive position pursuant

to A.R.S. § 49-432(C)(1) and so notify the applicant in writing. If the Director agrees with the applicant that the information covered by the notice of confidentiality satisfies the

statutory requirements, the Director shall include a notice in

the file for the permit or permit application that certain information has been considered confidential. 

D. If the Director takes action pursuant to A.R.S. § 49-432(D)

and obtains a final order authorizing disclosure, the Director

shall place the information in the public file and shall notify

any person who has requested disclosure. If the court determines that the information is not subject to disclosure, the

Director shall provide the notice specified in subsection (C)

above.

Historical Note

Amended effective August 7, 1975 (Supp. 75-1). 

Amended as an emergency effective December 15, 1975 

(Supp. 75-2). Amended effective May 10, 1976 (Supp. 

76-3). Former Section R9-3-306 renumbered as Section 

R9-3-305 effective August 6, 1976. References changed 

to conform (Supp. 76-4). Amended effective April 12, 

1977 (Supp. 77-2). Amended effective March 24, 1978 

(Supp. 78-2). Former Section R9-3-305 repealed, new 

Section R9-3-305 adopted effective May 14, 1979 (Supp. 

79-1). Amended effective October 2, 1979 (Supp. 79-5). 

Former Section R9-3-305 repealed, new Section R9-3-

305 adopted effective May 28, 1982 (Supp. 82-3). Former 

Section R9-3-305 renumbered without change as R18-2-

305 (Supp. 87-3). Section repealed, new Section adopted 

effective November 15, 1993 (Supp. 93-4).

R18-2-306. Permit Contents 

A. Each permit issued by the Director shall include the following

elements:

1. The date of issuance and the permit term.

2. Enforceable emission limitations and standards, including operational requirements and limitations that ensure

compliance with all applicable requirements at the time

of issuance and operational requirements and limitations

that have been voluntarily accepted under R18-2-306.01.

a. The permit shall specify and reference the origin of

and authority for each term or condition and identify

any difference in form as compared to the applicable

requirement upon which the term or condition is

based.

b. The permit shall state that, if an applicable requirement of the Act is more stringent than an applicable

requirement of regulations promulgated under Title

IV of the Act, both provisions shall be incorporated

into the permit and shall be enforceable by the

Administrator.

c. Any permit containing an equivalency demonstration for an alternative emission limit submitted

under R18-2-304(D) shall contain provisions to

ensure that any resulting emissions limit has been

demonstrated to be quantifiable, accountable,

enforceable, and based on replicable procedures.

d. The permit shall specify applicable requirements for

fugitive emission limitations, regardless of whether

the source category in question is included in the list

of sources contained in the definition of major

source in R18-2-101.

3. Each permit shall contain the following requirements

with respect to monitoring:

a. All monitoring and analysis procedures or test methods required under applicable monitoring and testing

requirements, including:

i. Monitoring and analysis procedures or test

methods under 40 CFR 64;

ii. Other procedures and methods promulgated

under sections 114(a)(3) or 504(b) of the Act;

and

iii. Monitoring and analysis procedures or test

methods required under R18-2-306.01.

b. 40 CFR 64 as adopted July 1, 1998, is incorporated

by reference and on file with the Department and the

Office of the Secretary of State. This incorporation

by reference contains no future editions or amendments. If more than one monitoring or testing

requirement applies, the permit may specify a

streamlined set of monitoring or testing provisions if

the specified monitoring or testing is adequate to

assure compliance at least to the same extent as the

monitoring or testing applicable requirements not

included in the permit as a result of such streamlining;

c. If the applicable requirement does not require periodic testing or instrumental or noninstrumental monitoring (which may consist of recordkeeping

designed to serve as monitoring), periodic monitoring sufficient to yield reliable data from the relevant

time period that are representative of the source’s

compliance with the permit as reported under subsection (A)(4). The monitoring requirements shall

ensure use of terms, test methods, units, averaging

periods, and other statistical conventions consistent

with the applicable requirement, and as otherwise

required under R18-2-306.01. Recordkeeping provisions may be sufficient to meet the requirements of

this subsection; and 

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 27 Supp. 10-2

d. As necessary, requirements concerning the use,

maintenance, and, if appropriate, installation of

monitoring equipment or methods.

4. The permit shall incorporate all applicable recordkeeping

requirements including recordkeeping requirements

established under R18-2-306.01, for the following:

a. Records of required monitoring information that

include the following:

i. The date, place as defined in the permit, and

time of sampling or measurement;

ii. The date any analyses was performed;

iii. The name of the company or entity that performed the analysis;

iv. A description of the analytical technique or

method used;

v. The results of any analysis; and

vi. The operating conditions existing at the time of

sampling or measurement;

b. Retention of records of all required monitoring data

and support information for a period of at least five

years from the date of the monitoring sample, measurement, report, or application. Support information includes all calibration and maintenance records

and all original strip-chart recordings for continuous

monitoring instrumentation and copies of all reports

required by the permit.

5. The permit shall incorporate all applicable reporting

requirements including reporting requirements established under R18-2-306.01 and require the following:

a. Submittal of reports of any required monitoring at

least every six months. All instances of deviations

from permit requirements shall be clearly identified

in the reports. All required reports shall be certified

by a responsible official consistent with R18-2-

304(H) and R18-2-309(A)(5).

b. Prompt reporting of deviations from permit requirements, including those attributable to upset conditions as defined in the permit, the probable cause of

the deviations, and any corrective actions or preventive measures taken. Notice that complies with subsection (E)(3)(d) shall be considered prompt for the

purposes of this subsection (A)(5)(b).

6. A permit condition prohibiting emissions exceeding any

allowances the source lawfully holds under Title IV of

the Act or the regulations promulgated thereunder.

a. A permit revision is not required for increases in

emissions that are authorized by allowances

acquired under the acid rain program, if the

increases do not require a permit revision under any

other applicable requirement.

b. A limit shall not be placed on the number of allowances held by the source. The source shall not, however, use allowances as a defense to noncompliance

with any other applicable requirement.

c. Any allowance shall be accounted for according to

the procedures established in regulations promulgated under Title IV of the Act.

d. Any permit issued under the requirements of this

Chapter and Title V of the Act to a unit subject to the

provisions of Title IV of the Act shall include conditions prohibiting all of the following:

i. Annual emissions of sulfur dioxide in excess of

the number of allowances to emit sulfur dioxide

held by the owner or operator of the unit or the

designated representative of the owner or operator,

ii. Exceedances of applicable emission rates,

iii. Use of any allowance before the year for which

it is allocated, and

iv. Contravention of any other provision of the

permit.

7. A severability clause to ensure the continued validity of

the various permit requirements in the event of a challenge to any portion of the permit.

8. Provisions stating the following:

a. The permittee shall comply with all conditions of the

permit including all applicable requirements of Arizona air quality statutes A.R.S. Title 49, Chapter 3,

and the air quality rules, 18 A.A.C. 2. Any permit

noncompliance is grounds for enforcement action;

for a permit termination, revocation and reissuance,

or revision; or for denial of a permit renewal application. Noncompliance with any federally enforceable requirement in a permit is a violation of the Act.

b. It shall not be a defense for a permittee in an

enforcement action that it would have been necessary to halt or reduce the permitted activity in order

to maintain compliance with the conditions of the

permit.

c. The permit may be revised, reopened, revoked and

reissued, or terminated for cause. The filing of a

request by the permittee for a permit revision, revocation and reissuance, or termination, or of a notification of planned changes or anticipated

noncompliance does not stay any permit condition.

d. The permit does not convey any property rights of

any sort, or any exclusive privilege to the permit

holder.

e. The permittee shall furnish to the Director, within a

reasonable time, any information that the Director

may request in writing to determine whether cause

exists for revising, revoking and reissuing, or terminating the permit, or to determine compliance with

the permit. Upon the Director’s request, the permittee shall also furnish to the Director copies of

records required to be kept by the permit. For information claimed to be confidential, the permittee

shall furnish a copy of the records directly to the

Administrator along with a claim of confidentiality.

f. For any major source operating in a nonattainment

area for all pollutants for which the source is classified as a major source, the source shall comply with

reasonably available control technology.

9. A provision to ensure that the source pays fees to the

Director under A.R.S. § 49-426(E), R18-2-326, and R18-

2-511.

10. A provision stating that a permit revision shall not be

required under any approved economic incentives, marketable permits, emissions trading, and other similar programs or processes for changes provided for in the

permit.

11. Terms and conditions for reasonably anticipated operating scenarios identified by the source in its application as

approved by the Director. The terms and conditions shall:

a. Require the source, contemporaneously with making

a change from one operating scenario to another, to

record in a log at the permitted facility a record of

the scenario under which it is operating;

b. Extend the permit shield described in R18-2-325 to

all terms and conditions under each such operating

scenario; and

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 28 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

c. Ensure that the terms and conditions of each such

alternative scenario meet all applicable requirements

and the requirements of this Chapter. 

12. Terms and conditions, if the permit applicant requests

them, and as approved by the Director, for the trading of

emissions increases and decreases in the permitted facility, to the extent that the applicable requirements provide

for trading the increases and decreases without a case-bycase approval of each emissions trade. The terms and

conditions:

a. Shall include all terms required under subsections

(A) and (C) to determine compliance;

b. Shall not extend the permit shield in subsection (D)

to all terms and conditions that allow the increases

and decreases in emissions;

c. Shall not include trading that involves emission

units for which emissions are not quantifiable or for

which there are no replicable procedures to enforce

the emissions trades; and

d. Shall meet all applicable requirements and requirements of this Chapter.

13. Terms and conditions, if the permit applicant requests

them and they are approved by the Director, setting forth

intermittent operating scenarios including potential periods of downtime. If the terms and conditions are

included, the state’s emissions inventory shall not reflect

the zero emissions associated with the periods of downtime.

14. Upon request of a permit applicant, the Director shall

issue a permit that contains terms and conditions allowing

for the trading of emission increases and decreases in the

permitted facility solely for the purpose of complying

with a federally enforceable emission cap established in

the permit independent of otherwise applicable requirements. The permit applicant shall include in its application proposed replicable procedures and permit terms that

ensure the emissions trades are quantifiable and enforceable. The Director shall not include in the emissions trading provisions any emissions units for which emissions

are not quantifiable or for which there are no replicable

procedures to enforce the emissions trades. The permit

shall also require compliance with all applicable requirements. Changes made under this subsection shall not

include modifications under any provision of Title I of

the Act and shall not exceed emissions allowable under

the permit. The terms and conditions shall provide, for

Class I sources, for notice that conforms to R18-2-317(D)

and (E), and for Class II sources, for logging that conforms to R18-2-317.02(B)(5). In addition, the notices for

Class I and Class II sources shall describe how the

increases and decreases in emissions will comply with the

terms and conditions of the permit.

15. Other terms and conditions as are required by the Act,

A.R.S. Title 49, Chapter 3, Articles 1 and 2, and the rules

adopted in 18 A.A.C. 2.

B. Federally-enforceable Requirements.

1. The following permit conditions shall be enforceable by

the Administrator and citizens under the Act:

a. Except as provided in subsection (B)(2), all terms

and conditions in a Class I permit, including any

provision designed to limit a source’s potential to

emit;

b. Terms or conditions in a Class II permit setting forth

federal applicable requirements; and

c. Terms and conditions in any permit entered into voluntarily under R18-2-306.01, as follows:

i. Emissions limitations, controls, or other

requirements; and

ii. Monitoring, recordkeeping, and reporting

requirements associated with the emissions

limitations, controls, or other requirements in

subsection (B)(1)(c)(i).

2. Notwithstanding subsection (B)(1)(a), the Director shall

specifically designate as not being federally enforceable

under the Act any terms and conditions included in a

Class I permit that are not required under the Act or under

any of its applicable requirements. 

C. Each permit shall contain a compliance plan as specified in

R18-2-309.

D. Each permit shall include the applicable permit shield provisions under R18-2-325.

E. Emergency provision.

1. An “emergency” means any situation arising from sudden

and reasonably unforeseeable events beyond the control

of the source, including acts of God, that requires immediate corrective action to restore normal operation and

that causes the source to exceed a technology-based emission limitation under the permit, due to unavoidable

increases in emissions attributable to the emergency. An

emergency shall not include noncompliance to the extent

caused by improperly designed equipment, lack of preventative maintenance, careless or improper operation, or

operator error.

2. An emergency constitutes an affirmative defense to an

action brought for noncompliance with technology-based

emission limitations if the conditions of subsection (E)(3)

are met.

3. The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs, or other relevant evidence that:

a. An emergency occurred and the permittee can identify the cause or causes of the emergency;

b. At the time of the emergency the permitted facility

was being properly operated;

c. During the period of the emergency, the permittee

took all reasonable steps to minimize levels of emissions that exceeded the emissions standards or other

requirements in the permit; and

d. The permittee submitted notice of the emergency to

the Director by certified mail, facsimile, or hand

delivery within two working days of the time when

emission limitations were exceeded due to the emergency. This notice shall contain a description of the

emergency, any steps taken to mitigate emissions,

and corrective action taken.

4. In any enforcement proceeding, the permittee seeking to

establish the occurrence of an emergency has the burden

of proof.

5. This provision is in addition to any emergency or upset

provision contained in any applicable requirement.

F. A Class I permit issued to a major source shall require that

revisions be made under R18-2-321 to incorporate additional

applicable requirements adopted by the Administrator under

the Act that become applicable to a source with a permit with a

remaining permit term of three or more years. A revision shall

not be required if the effective date of the applicable requirement is after the expiration of the permit. The revisions shall

be made as expeditiously as practicable, but not later than 18

months after the promulgation of the standards and regulations. Any permit revision required under this subsection shall

comply with R18-2-322 for permit renewal and shall reset the

five-year permit term. 

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 29 Supp. 10-2

Historical Note

Adopted effective August 7, 1975 (Supp. 75-1). Former 

Section R9-3-307 renumbered as Section R9-3-306 effective August 6, 1976. Reference changed to conform 

(Supp. 76-4). Former Section R9-3-306 repealed, new 

Section R9-3-306 adopted effective May 14, 1979 (Supp. 

79-1). Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective July 9, 1980 (Supp. 80-4). Amended 

subsection (A) effective May 28, 1982 (Supp. 82-3). 

Amended subsection (A) effective September 28, 1984 

(Supp. 84-5). Former Section R9-3-306 renumbered 

without change as R18-2-306 (Supp. 87-3). Amended 

subsection (I) effective December 1, 1988 (Supp. 88-4). 

Amended effective September 26, 1990 (Supp. 90-3). 

Section repealed, new Section adopted effective November 15, 1993 (Supp. 93-4). Amended effective August 1, 

1995 (Supp. 95-3). Amended effective June 4, 1998 

(Supp. 98-2). Amended by final rulemaking at 5 A.A.R. 

4074, effective September 22, 1999 (Supp. 99-3). 

Amended by final rulemaking at 6 A.A.R. 343, effective 

December 20, 1999 (Supp. 99-4).

R18-2-306.01.Permits Containing Voluntarily Accepted Emission Limitations and Standards

A. A source may voluntarily propose in its application, and

accept in its permit, emissions limitations, controls, or other

requirements that are permanent, quantifiable, and otherwise

enforceable as a practical matter in order to avoid classification as a source that requires a Class I permit or to avoid one or

more other applicable requirements. For the purposes of this

Section, “enforceable as a practical matter” means that specific means to assess compliance with an emissions limitation,

control, or other requirement are provided for in the permit in

a manner that allows compliance to be readily determined by

an inspection of records and reports.

B. In order for a source to obtain a permit containing voluntarily

accepted emissions limitations, controls, or other requirements, the source shall demonstrate all of the following in its

permit application:

1. The emissions limitations, controls, or other requirements

to be imposed for the purpose of avoiding an applicable

requirement are at least as stringent as the emissions limitations, controls, or other requirements that would otherwise be applicable to that source, including those that

originate in an applicable implementation plan; and the

permit does not waive, or make less stringent, any limitations or requirements contained in or issued pursuant to

an applicable implementation plan, or that are otherwise

federally enforceable.

2. All voluntarily accepted emissions limitations, controls,

or other requirements will be permanent, quantifiable,

and otherwise enforceable as a practical matter.

C. At the same time as notice of proposed issuance is first published pursuant to A.R.S. § 49-426(D), the Director shall send

a copy of any Class II permit proposed to be issued pursuant to

this Section to the Administrator for review during the comment period described in the notice pursuant to R18-2-330(D).

D. The Director shall send a copy of each final permit issued pursuant to this Section to the Administrator.

Historical Note

Adopted effective August 1, 1995 (Supp. 95-3). 

Amended by final rulemaking at 12 A.A.R. 1953, effective January 1, 2007 (Supp. 06-2).

R18-2-306.02.Establishment of an Emissions Cap

A. An applicant may, in its application for a new permit, renewal

of an existing permit, or as a significant permit revision,

request an emissions cap for a particular pollutant expressed in

tons per year as determined on a 12-month rolling average, or

any shorter averaging time necessary to enforce any applicable

requirement, for any emissions unit, combination of emissions

units, or an entire source to allow operating flexibility including emissions trading for the purpose of complying with the

cap. This Section shall not apply to sources that hold an

authority to operate under a general permit pursuant to Article

5 of this Chapter.

B. An emissions cap for a Class II source that limits the emissions

of a particular pollutant for the entire source shall not exceed

any of the following:

1. The applicable requirement for the pollutant if expressed

in tons per year;

2. The source’s actual emissions plus the applicable significance level for the pollutant established in R18-2-

101(104);

3. The applicable major source threshold for the pollutant;

or

4. A sourcewide emission limitation for the pollutant voluntarily agreed to by the source under R18-2-306.01.

C. In order to incorporate an emissions cap in a permit the applicant must demonstrate to the Director that terms and conditions in the permit will:

1. Ensure compliance with all applicable requirements for

the pollutant;

2. Contain replicable procedures to ensure that the emissions cap is enforceable as a practical matter and emissions trading conducted under it is quantifiable and

enforceable as a practical matter. For the purposes of this

Section, “enforceable as a practical matter” shall include

the following criteria:

a. The permit conditions are permanent and quantifiable;

b. The permit includes a legally enforceable obligation

to comply;

c. The limits impose an objective and quantifiable

operational or production limit or require the use of

in-place air pollution control equipment;

d. The permit limits have short-term averaging times

consistent with the averaging times of the applicable

requirement;

e. The permit conditions are enforceable and are independent of any other applicable limitations; and

f. The permit conditions for monitoring, recordkeeping, and reporting requirements are sufficient to

comply with R18-2-306(A)(3),(4), and (5).

3. For a Class I permit, include all terms required under

R18-2-306(A) and R18-2-309.

D. Class I sources shall log an increase or decrease in actual emissions authorized as a trade under an emissions cap unless an

applicable requirement requires notice to the Director. The log

shall contain the information required by the permit including,

at a minimum, when the proposed emissions increase or

decrease occurred, a description of the physical change or

change in method of operation that produced the increase or

decrease, the change in emissions from the physical change or

change in method of operation, and how the increase or

decrease in emissions complies with the permit. Class II

sources shall comply with R18-2-317.02(B)(5).

E. The Director shall not include in an emissions cap or emissions trading allowed under a cap any emissions unit for which

the emissions are not quantifiable or for which there are no

replicable procedures or practical means to enforce emissions

trades.

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 37 Supp. 10-2

E(Q) = pollutant emission, g/million cal (lb/

million Btu).

C = pollutant concentration, g/dscm (lb/dscf),

determined by multiplying the average concentration (ppm) for each hourly period by 4.16 x

10-5 M g/dscm per ppm (2.64 x 10-9 M lb/dscf

per ppm) where M = pollutant molecular

weight, g/g-mole (lb/lb-mole), M = 64 for sulfur dioxide and 46 for oxides of nitrogen. 

C(ws) = pollutant concentrations at stack conditions, g/wscm (lb/wscf), determined by multiplying the average concentration (ppm) for

each one-hour period by 4.15 x 10-5 M lb/wscm

per ppm) (2.59 x 10-5 M lb/wscf per ppm)

where M = pollutant molecular weight, g/g

mole (lb/lb mole). M = 64 for sulfur dioxide

and 46 for nitrogen oxides. 

%O(2),%CO(2) = Oxygen or carbon dioxide

volume (expressed as percent) determined with

equipment specified under subsection

(D)(1)(d). 

F,F(c) = A factor representing a ratio of the volume of dry flue gases generated to the calorific

value of the fuel combusted (F), a factor representing a ratio of the volume of carbon dioxide

generated to the calorific value of the fuel combusted (F(c)), respectively. Values of F and F(c)

are given in 40 CFR 60.45(f) (Chapter 1). 

F(w) = A factor representing a ratio of the volume of wet flue gases generated to the caloric

value of the fuel combusted. Values of F(w) are

given in Reference Method 19 of the Arizona

Testing Manual. 

B(wa) = Proportion by volume of water vapor

in the ambient air. Approval may be given for

determination of B(w)a by on-site instrumental

measurement provided that the absolute accuracy of the measurement technique can be demonstrated to be within ± 0.7% water vapor.

Estimation methods for B(wa) are given in Reference Method 19 of the Arizona Testing Manual. 

B(ws) = Proportion by volume of water vapor

in the stack gas. 

2. For sulfuric acid plants as defined in R18-2-101, the

owner or operator shall: 

a. Establish a conversion factor three times daily

according to the procedures of 40 CFR 60.84(b)

(Chapter 1),

b. Multiply the conversion factor by the average sulfur

dioxide concentration in the flue gases to obtain

average sulfur dioxide emissions in Kg/metric ton

(lb/short ton), and 

c. Report the average sulfur dioxide emission for each

averaging period in excess of the applicable emission standard in the quarterly summary. 

3. For nitric acid plants, the owner or operator shall: 

a. Establish a conversion factor according to the procedures of 40 CFR 60.73(b) (Chapter 1),

b. Multiply the conversion factor by the average nitrogen oxides concentration in the flue gases to obtain

the nitrogen oxides emissions in the units of the

applicable standard,

c. Report the average nitrogen oxides emission for

each averaging period in excess of applicable emission standard in the quarterly summary. 

4. The Director may allow data reporting or reduction procedures varying from those set forth in this Section if the

owner or operator of a source shows to the satisfaction of

the Director that his procedures are at least as accurate as

those in this Section. Such procedures may include but

are not limited to the following: 

a. Alternative procedures for computing emission

averages that do not require integration of data (e.g.,

some facilities may demonstrate that the variability

of their emissions is sufficiently small to allow accurate reduction of data based upon computing averages from equally spaced data points over the

averaging period). 

b. Alternative methods of converting pollutant concentration measurements to the units of the emission

standards.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective October 2, 1979 (Supp. 79-5). Editorial correction, subsection (C), paragraph (1), subparagraph (d) 

(Supp 80-2). Amended effective July 9, 1980 (Supp. 80-

4). Former Section R9-3-313 renumbered without change 

as R18-2-313 (Supp. 87-3). Amended effective September 26, 1990 (Supp. 90-3). Section repealed, new Section 

adopted effective November 15, 1993 (Supp. 93-4). 

Amended by final rulemaking at 7 A.A.R. 1164, effective 

February 15, 2001 (Supp. 01-1).

R18-2-314. Quality Assurance 

Facilities subject to the permit requirements of this Article shall

submit a quality assurance plan to the Director that meets the

requirements of R18-2-311(D)(3) within 12 months of the effective

date of this Section. Facilities subject to the requirements of R18-2-

313 shall submit a quality assurance plan as specified in the permit.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective July 9, 1980 (Supp. 80-4). Former Section R9-3-

314 renumbered without change as R18-2-314 (Supp. 87-

3). Section repealed, new Section adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-315. Posting of Permit

A. Any person who has been granted an individual or general permit shall post such permit or a certificate of permit issuance on

location where the equipment is installed in such a manner as

to be clearly visible and accessible. All equipment covered by

the permit shall be clearly marked with one of the following:

1. The current permit number,

2. A serial number or other equipment number that is also

listed in the permit to identify that piece of equipment.

B. A copy of the complete permit shall be kept on the site.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective July 9, 1980 (Supp. 80-4). Former Section R9-3-

315 renumbered without change as R18-2-315 (Supp. 87-

3). Section repealed, new Section adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-316. Notice by Building Permit Agencies

All agencies of the county or political subdivisions of the county

that issue or grant building permits or approvals shall examine the

plans and specifications submitted by an applicant for a permit or

approval to determine if an air pollution permit will possibly be

required under the provisions of this Chapter. If it appears that an

air pollution permit will be required, the agency or political subdiAPPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 38 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

vision shall give written notice to the applicant to contact the Director and shall furnish a copy of that notice to the Director.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-316 renumbered without change as R18-2-

316 (Supp. 87-3).

R18-2-317. Facility Changes Allowed Without Permit Revisions - Class I

A. A facility with a Class I permit may make changes without a

permit revision if all of the following apply:

1. The changes are not modifications under any provision of

Title I of the Act or under A.R.S. § 49-401.01(24);

2. The changes do not exceed the emissions allowable under

the permit whether expressed therein as a rate of emissions or in terms of total emissions;

3. The changes do not violate any applicable requirements

or trigger any additional applicable requirements;

4. The changes satisfy all requirements for a minor permit

revision under R18-2-319(A); and

5. The changes do not contravene federally enforceable permit terms and conditions that are monitoring (including

test methods), recordkeeping, reporting, or compliance

certification requirements.

B. The substitution of an item of process or pollution control

equipment for an identical or substantially similar item of process or pollution control equipment shall qualify as a change

that does not require a permit revision, if the substitution

meets all of the requirements of subsections (A), (D), and (E).

C. Except for sources with authority to operate under general permits, permitted sources may trade increases and decreases in

emissions within the permitted facility, as established in the

permit under R18-2-306(A)(12), if an applicable implementation plan provides for the emissions trades without applying

for a permit revision and based on the seven working days

notice prescribed in subsection (D). This provision is available

if the permit does not provide for the emissions trading as a

minor permit revision.

D. For each change under subsections (A) through (C), a written

notice by certified mail or hand delivery shall be received by

the Director and the Administrator a minimum of seven working days in advance of the change. Notifications of changes

associated with emergency conditions, such as malfunctions

necessitating the replacement of equipment, may be provided

less than seven working days in advance of the change but

must be provided as far in advance of the change or, if advance

notification is not practicable, as soon after the change as possible.

E. Each notification shall include:

1. When the proposed change will occur;

2. A description of the change;

3. Any change in emissions of regulated air pollutants;

4. The pollutants emitted subject to the emissions trade, if

any;

5. The provisions in the implementation plan that provide

for the emissions trade with which the source will comply

and any other information as may be required by the provisions in the implementation plan authorizing the trade;

6. If the emissions trading provisions of the implementation

plan are invoked, then the permit requirements with

which the source will comply; and

7. Any permit term or condition that is no longer applicable

as a result of the change.

F. The permit shield described in R18-2-325 shall not apply to

any change made under subsections (A) through (C). Compliance with the permit requirements that the source will meet

using the emissions trade shall be determined according to

requirements of the implementation plan authorizing the emissions trade.

G. Except as otherwise provided for in the permit, making a

change from one alternative operating scenario to another as

provided under R18-2-306(A)(11) shall not require any prior

notice under this Section.

H. Notwithstanding any other part of this Section, the Director

may require a permit to be revised for any change that, when

considered together with any other changes submitted by the

same source under this Section over the term of the permit, do

not satisfy subsection (A).

I. The Director shall make available to the public monthly summaries of all notices received under this Section.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-317 renumbered without change as R18-2-

317 (Supp. 87-3). Section repealed, new Section adopted 

effective November 15, 1993 (Supp. 93-4). Amended by 

final rulemaking at 5 A.A.R. 4074, effective September 

22, 1999 (Supp. 99-3). Amended by final rulemaking at 

12 A.A.R. 1953, effective January 1, 2007 (Supp. 06-2).

R18-2-317.01.Facility Changes that Require a Permit Revision

- Class II

A. The following changes at a source with a Class II permit shall

require a permit revision:

1. A change that triggers a new applicable requirement or

violates an existing applicable requirement.

2. Establishment of, or change in, an emissions cap;

3. A change that will require a case-by-case determination

of an emission limitation or other standard, or a sourcespecific determination of ambient impacts, or a visibility

or increment analysis;

4. A change that results in emissions that are subject to

monitoring, recordkeeping or reporting under R18-2-

306(A)(3),(4), or (5) if the emissions cannot be measured

or otherwise adequately quantified by monitoring,

recordkeeping, or reporting requirements already in the

permit;

5. A change that will authorize the burning of used oil, used

oil fuel, hazardous waste, or hazardous waste fuel, or any

other fuel not currently authorized by the permit;

6. A change that requires the source to obtain a Class I permit;

7. Replacement of an item of air pollution control equipment listed in the permit with one that does not have the

same or better pollutant removal efficiency;

8. Establishment or revision of a limit under R18-2-306.01;

9. Increasing operating hours or rates of production above

the permitted level; and

10. A change that relaxes monitoring, recordkeeping, or

reporting requirements, except when the change results:

a. From removing equipment that results in a permanent decrease in actual emissions, if the source

keeps on-site records of the change in a log that satisfies Appendix 3 of this Chapter and if the requirements that are relaxed are present in the permit

solely for the equipment that was removed; or

b. From a change in an applicable requirement.

B. A source with a Class II permit may make any physical change

or change in the method of operation without revising the

source’s permit unless the change is specifically prohibited in

the source’s permit or is a change described in subsection (A).

A change that does not require a permit revision may still be

subject to requirements in R18-2-317.02.

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 42 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

Amended by final rulemaking at 6 A.A.R. 343, effective 

December 20, 1999 (Supp. 99-4).

R18-2-321. Permit Reopenings; Revocation and Reissuance;

Termination

A. Reopening for Cause.

1. Each issued permit shall include provisions specifying

the conditions under which the permit shall be reopened

prior to the expiration of the permit. A permit shall be

reopened and revised under any of the following circumstances:

a. Additional applicable requirements under the Act

become applicable to a major source with a remaining permit term of three or more years. Such a

reopening shall be completed not later than 18

months after promulgation of the applicable requirement. No such reopening is required if the effective

date of the requirement is later than the date on

which the permit is due to expire, unless the original

permit or any of its terms and conditions has been

extended pursuant to R18-2-322(B). Any permit

revision required pursuant to this subsection shall

comply with provisions in R18-2-322 for permit

renewal and shall reset the five-year permit term. 

b. Additional requirements, including excess emissions

requirements, become applicable to an affected

source under the acid rain program. Upon approval

by the Administrator, excess emissions offset plans

shall be deemed to be incorporated into the Class I

permit.

c. The Director or the Administrator determines that

the permit contains a material mistake or that inaccurate statements were made in establishing the

emissions standards or other terms or conditions of

the permit.

d. The Director or the Administrator determines that

the permit needs to be revised or revoked to assure

compliance with the applicable requirements.

2. Proceedings to reopen and issue a permit, including

appeal of any final action relating to a permit reopening,

shall follow the same procedures as apply to initial permit

issuance and shall, except for reopenings under subsection (1)(a), affect only those parts of the permit for which

cause to reopen exists. Such reopening shall be made as

expeditiously as practicable.

3. Reopenings under subsection (A)(1) shall not be initiated

before a notice of such intent is provided to the source by

the Director at least 30 days in advance of the date that

the permit is to be reopened, except that the Director may

provide a shorter time period in the case of an emergency.

4. When a permit is reopened and revised pursuant to this

Section, the Director may make appropriate revisions to

the permit shield established pursuant to R18-2-325.

B. Within 10 days of receipt of notice from the Administrator that

cause exists to reopen a Class I permit, the Director shall

notify the source. The source shall have 30 days to respond to

the Director. Within 90 days of receipt of notice from the

Administrator that cause exists to reopen a permit, or within

any extension to the 90 days granted by EPA, the Director

shall forward to the Administrator and the source a proposed

determination of termination, revision, or revocation and reissuance of the permit. Within 90 days of receipt of an EPA

objection to the Director’s proposal, the Director shall resolve

the objection and act on the permit.

C. The Director may issue a notice of termination of a permit

issued pursuant to this Chapter if:

1. The Director has reasonable cause to believe that the permit was obtained by fraud or misrepresentation.

2. The person applying for the permit failed to disclose a

material fact required by the permit application form or

the regulation applicable to the permit, of which the

applicant had or should have had knowledge at the time

the application was submitted.

3. The terms and conditions of the permit have been or are

being violated.

If the Director issues a notice of termination under this Section, the notice shall be served on the permittee by certified

mail, return receipt requested. The notice shall include a statement detailing the grounds for the revocation and a statement

that the permittee is entitled to a hearing.

Historical Note

Adopted effective September 22, 1983 (Supp. 83-5). 

Former Section R9-3-321 renumbered without change as 

R18-2-321 (Supp. 87-3). Amended effective September 

26, 1990 (Supp. 90-3). Section repealed, new Section 

adopted effective November 15, 1993 (Supp. 93-4).

R18-2-322. Permit Renewal and Expiration

A. A permit being renewed is subject to the same procedural

requirements, including any for public participation and

affected states and Administrator review, that would apply to

that permit’s initial issuance.

B. Except as provided in R18-2-303(A), permit expiration terminates the source’s right to operate unless a timely application

for renewal that is sufficient under A.R.S. § 41-1064 has been

submitted in accordance with R18-2-304. Any testing that is

required for renewal shall be completed before the proposed

permit is issued by the Director.

C. The Director shall act on an application for a permit renewal

within the same time-frames as on an initial permit.

Historical Note

Adopted effective September 22, 1983 (Supp. 83-5). 

Former Section R9-3-322 renumbered without change as 

R18-2-322 (Supp. 87-3). Amended effective December 1, 

1988 (Supp. 88-4). Section repealed, new Section 

adopted effective November 15, 1993 (Supp. 93-4).

R18-2-323. Permit Transfers

A. Except as provided in A.R.S. § 49-429 and subsection (B), a

Class I or II permit may be transferred to another person if the

person who holds the permit gives notice to the Director in

writing at least 30 days before the proposed transfer. The

notice shall contain the following:

1. The permit number and expiration date;

2. The name, address, and telephone number of the current

permit holder;

3. The name, address and telephone number of the person to

receive the permit;

4. The name and title of the individual within the organization who is accepting responsibility for the permit along

with a signed statement by that person indicating such

acceptance;

5. A description of the equipment to be transferred;

6. A written agreement containing a specific date for transfer of permit responsibility, coverage, and liability

between the current and new permittee;

7. Provisions for the payment of any fees pursuant to R18-2-

326 or R18-2-501 that will be due and payable before the

effective date of transfer;

8. Sufficient information about the source’s technical and

financial capabilities of operating the source to allow the

Director to make the decision in subsection (B) including:

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 43 Supp. 10-2

a. The qualifications of each person principally responsible for the operation of the source;

b. A statement by the chief financial officer of the new

permittee that it is financially capable of operating

the facility in compliance with the law, and the

information that provides the basis for that statement;

c. A brief description of any action for the enforcement

of any federal or state law, or any county, city, or

local government ordinance relating to the protection of the environment, instituted against any person employed by the new permittee and principally

responsible for operating the facility during the five

years preceding the date of application. In lieu of

this description, the new permittee may submit a

copy of the certificate of disclosure or 10-K form

required under A.R.S. § 49-109, or a statement that

this information has been filed in compliance with

A.R.S. § 49-109.

B. The Director shall deny the transfer if the Director determines

that the organization receiving the permit is not capable of

operating the source in compliance with A.R.S. Title 49,

Chapter 3, Article 2, the provisions of this Chapter or the provisions of the permit. Notice of the denial shall be sent to the

original permit holder by certified mail stating the reason for

the denial within 10 working days of the Director’s receipt of

the application. If the transfer is not denied within 10 working

days after receipt of the notice, it shall be deemed approved.

C. To appeal the transfer denial:

1. Both the transferor and transferee shall petition the Office

of Administrative Hearings in writing for a public hearing; and

2. All parties shall follow the appeal process for a permit.

D. The Director shall make available to the public monthly summaries of all notices received under this Section.

Historical Note

Adopted effective September 22, 1983 (Supp. 83-5). 

Former Section R9-3-323 renumbered without change as 

R18-2-323 (Supp. 87-3). Amended effective September 

26, 1990 (Supp. 90-3). Section repealed, new Section 

adopted effective November 15, 1993 (Supp. 93-4). 

Amended by final rulemaking at 12 A.A.R. 4698, effective February 3, 2007 (Supp. 06-4).

R18-2-324. Portable Sources

A. A portable source that will operate for the duration of its permit solely in one county that has established a local air pollution control program pursuant to A.R.S. § 49-479 shall obtain

a permit from that county. A portable source with a county

permit shall not operate in any other county.

B. A portable source which has a county permit but proposes to

operate outside the county shall obtain a permit from the

Director. Upon issuance of a permit by the Director, the county

shall terminate the county permit for that source. Before commencing operation in the new county, the source shall notify

the Director and the control officer who has jurisdiction over

the geographic area that includes the new location according to

subsection (D).

C. An owner of portable source equipment which requires a permit under this Chapter shall obtain the permit prior to renting

or leasing said equipment. This permit shall be provided by the

owner to the renter or lessee, and the renter or lessee shall be

bound by the permit provisions. In the event a copy of the permit is not provided to the renter or lessee, both the owner and

the lessee or renter shall be responsible for the operation of

this equipment in compliance with the permit conditions and

any violations thereof.

D. A portable source may be transferred from one location to

another provided that the owner or operator of such equipment

notifies the Director and any control officer who has jurisdiction over the geographic area that includes the new location of

the transfer by certified mail at least 10 working days before

the transfer. The notification required under this subsection

shall include:

1. A description of the equipment to be transferred including the permit number for such equipment; 

2. A description of the present location;

3. A description of the location to which the equipment is to

be transferred, including the availability of all utilities,

such as water and electricity, necessary for the proper

operation of all control equipment; 

4. The date on which the equipment is to be moved; and

5. The date on which operation of the equipment will begin

at the new location.

E. Any permit for a portable source shall contain conditions that

will assure compliance with all applicable requirements at all

authorized locations.

Historical Note

Adopted effective November 15, 1993 (Supp. 93-4).

R18-2-325. Permit Shields

A. Each Class I or II permit issued under this Chapter shall specifically identify all federal, state, and local air pollution control requirements applicable to the source at the time the

permit is issued. The permit shall state that compliance with

the conditions of the permit shall be deemed compliance with

any applicable requirement as of the date of permit issuance,

provided that such applicable requirements are included and

expressly identified in the permit. The Director may include in

a permit determinations that other requirements specifically

identified are not applicable. Any permit under this Chapter

that does not expressly state that a permit shield exists shall

not provide such a shield. 

B. Nothing in this Section or in any permit shall alter or affect the

following:

1. The provisions of Section 303 of the Act (emergency

orders), including the authority of the Administrator

under that Section;

2. The liability of an owner or operator of a source for any

violation of applicable requirements prior to or at the time

of permit issuance;

3. The applicable requirements of the acid rain program,

consistent with Section 408(a) of the Act;

4. The ability of the Administrator or the Director to obtain

information from a source pursuant to Section 114 of the

Act, or any provision of state law;

5. The authority of the Director to require compliance with

new applicable requirements adopted after the permit is

issued.

C. In addition to the provisions of R18-2-321, a permit may be

reopened by the Director and the permit shield revised when it

is determined that standards or conditions in the permit are

based on incorrect information provided by the applicant.

Historical Note

Emergency rule adopted effective September 17, 1991, 

pursuant to A.R.S. § 41-1026, valid for only 90 days 

(Supp. 91-3). Emergency rule re-adopted without change 

effective December 16, 1991, pursuant to A.R.S. § 41-

1026, valid for only 90 days (Supp. 91-4). Emergency 

expired; text deleted (Supp. 93-1). New Section adopted 

effective November 15, 1993 (Supp. 93-4).

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 49 Supp. 10-2

3. The condition is one of the following:

a. An enforceable emission standard imposed to avoid

classification as a major modification or major

source or to avoid triggering any other applicable

requirement;

b. A requirement to install, operate, or maintain a maximum achievable control technology or hazardous

air pollutant reasonably available control technology

required under Article 17 of this Chapter;

c. A requirement for the installation or certification of

a monitoring device;

d. A requirement for the installation of air pollution

control equipment;

e. A requirement for the operation of air pollution control equipment;

f. An opacity standard required by Section 111 or Title

I, Part C or D of the Act. 

4. Violation of the condition is not covered by A.R.S. § 49-

464(A) through (F), or (H) through (J) or A.R.S. § 49-

514(A) through (F), or (H) through (J).

B. For the purposes of subsections (A)(3)(c), (d), and (e), a permit condition shall not be material where the failure to comply

resulted from circumstances which were outside the control of

the source. As used in this Section, “circumstances outside the

control of the source” shall mean circumstances where the violation resulted from a sudden and unavoidable breakdown of

the process or the control equipment, resulted from unavoidable conditions during a start up or shut down or resulted from

upset of operations.

C. For purposes of this Section, the term “emission standard”

shall have the meaning specified in A.R.S. §§ 49-464(U) and

49-514(T).

Historical Note

Adopted effective November 15, 1993 (Supp. 93-4). 

Amended effective June 4, 1998 (Supp. 98-2). Amended 

by final rulemaking at 12 A.A.R. 1953, effective January 

1, 2007 (Supp. 06-2).

R18-2-332. Stack Height Limitation

A. The limitations set forth herein shall not apply to stacks or dispersion techniques used by the owner or operator prior to

December 31, 1970, for which the owner or operator had:

1. Begun, or caused to begin, a continuous program of physical on-site construction of the stack;

2. Entered into building agreements or contractual obligations, which could not be cancelled or modified without

substantial loss to the owner or operator, to undertake a

program of construction of the stack to be completed in a

reasonable time; or

3. Coal-fired steam electric generating units, subject to the

provisions of Section 118 of the Act which commenced

operation before July 1, 1975, with stacks constructed

under a construction contract awarded before February 8,

1974.

B. GEP stack height is calculated as the greater of the following

four numbers in subsections (1) through (4):

1. 213.25 feet (65 meters);

2. For stacks in existence on January 12, 1979, and for

which the owner or operator had obtained all applicable

preconstruction permits or approvals required under 40

CFR Parts 51 and 52 and R18-2-403, Hg = 2.5H;

3. For all other stacks, Hg = H + 1.5L, where

Hg = good engineering practice stack height, measured from the ground-level elevation at the base of

the stack;

H = height of nearby structure measured from the

ground-level elevation at the base of the stack;

L = lesser dimension (height or projected width) of

nearby structure;

provided that the EPA, the Director, or local control

agency may require the use of a field study or fluid model

to verify GEP stack height for the source; or

4. The height demonstrated by a fluid model or a field study

approved by the reviewing agency, which ensures that the

emissions from a stack do not result in excessive concentrations of any air pollutant as a result of atmospheric

downwash, wakes, or eddy effects created by the source

itself, nearby structures, or nearby terrain obstacles;

5. For a specific structure or terrain feature, “nearby” shall

be:

a. For purposes of applying the formulae in subsections (B)(2) and (3), that distance up to five times

the lesser of the height or the width dimension of a

structure but not greater than 0.8 km (1/2 mile).

b. For conducting demonstrations under subsection

(B)(4), means not greater than 0.8 km (1/2 mile). An

exception is that the portion of a terrain feature may

be considered to be nearby which falls within a distance of up to 10 times the maximum height (H+) of

the feature, not to exceed 2 miles if such feature

achieved a height (H+) 0.8 km from the stack. The

height shall be at least 40% of the GEP stack height

determined by the formula provided in subsection

(B)(3), or 85 feet (26 meters), whichever is greater,

as measured from the ground-level elevation at the

base of the stack.

6. “Excessive concentrations” means, for the purpose of

determining good engineering practice stack height under

subsection (B)(4):

a. For sources seeking credit for stack height exceeding that established under subsections (B)(2) and

(3), a maximum ground-level concentration due to

emissions from a stack due in whole or in part to

downwash, wakes, and eddy effects produced by

nearby structures or nearby terrain features which

individually is at least 40% in excess of the maximum concentration experienced in the absence of

such downwash, wakes, or eddy effects and which

contributes to a total concentration due to emissions

from all sources that is greater than an ambient air

quality standard. For sources subject to the requirements for permits or permit revisions under Article 4

of this Chapter, an excessive concentration alternatively means a maximum ground-level concentration

due to emissions from a stack due in whole or part to

downwash, wakes or eddy effects produced by

nearby structures or nearby terrain features which

individually is at least 40% in excess of the maximum concentration experienced in the absence of

such downwash, wakes, or eddy effects and greater

than the applicable maximum allowable increase

contained in R18-2-218. The allowable emission

rate to be used in making demonstrations under subsection (B)(4) shall be prescribed by the new source

performance standard which is applicable to the

source category unless the owner or operator demonstrates that this emission rate is infeasible. Where

such demonstrations are approved by the Director,

an alternative emission rate shall be established in

consultation with the source owner or operator;

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 50 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

b. For sources seeking credit after October 11, 1983,

for increases in existing stack heights up to the

heights established under subsections (B)(2) and (3),

either:

i. A maximum ground-level concentration due in

whole or in part to downwash, wakes, or eddy

effects as provided in subsection (B)(6)(a),

except that emission rate specified by any

applicable SIP shall be used; or

ii. The actual presence of a local nuisance caused

by the existing stack, as determined by the

Director; and

c. For sources seeking credit after January 12, 1979,

for a stack height determined under subsections

(B)(2) and (3), where the Director requires the use of

a field study or fluid model to verify GEP stack

height, for sources seeking stack height credit after

November 9, 1984, based on the aerodynamic influence of cooling towers, and for sources seeking

stack height credit after December 31, 1970, based

on the aerodynamic influence of structures not adequately represented by the equations in subsections

(B)(2) and (3), a maximum ground-level concentration due in whole or in part to downwash, wakes, or

eddy effects that is at least 40% in excess of the

maximum concentration experienced in the absence

of such downwash, wakes, or eddy effects.

C. The degree of emission limitation required of any source after

the respective date given in subsection (A) above for control of

any pollutant shall not be affected by so much of any source’s

stack height that exceeds good engineering practice or by any

other dispersion technique.

D. The good engineering practice (GEP) stack height for any

source seeking credit because of plume impaction which

results in concentrations in violation of national ambient air

quality standards or applicable maximum allowable increases

under R18-2-218 can be adjusted by determining the stack

height necessary to predict the same maximum air pollutant

concentration on any elevated terrain feature as the maximum

concentration associated with the emission limit which results

from modelling the source using the GEP stack height as

determined herein and assuming the elevated terrain features

to be equal in elevation to the GEP stack height. If this

adjusted GEP stack height is greater than stack height the

source proposes to use, the source’s emission limitation and air

quality impact shall be determined using the proposed stack

height and the actual terrain heights.

E. Before the Director issues a permit or permit revision under

this Article to a source based on a good engineering practice

stack height that exceeds the height allowed by subsection (B),

the Director shall notify the public of the availability of the

demonstration study and provide opportunity for a public hearing in accordance with the requirements of R18-1-402.

Historical Note

Adopted effective November 15, 1993 (Supp. 93-4).

R18-2-333. Acid Rain

A. 40 CFR 72, 74, 75 and 76 and all accompanying appendices,

adopted as of July 1, 2006, (and no future amendments) are

incorporated by reference as applicable requirements. These

standards are on file with the Department and shall be applied

by the Department. These standards can be obtained from the

U.S. Government Printing Office, Superintendent of Documents, Mail Stop SSOP, Washington D.C. 20402-9328. 

B. When used in 40 CFR 72, 74, 75 or 76, “Permitting Authority”

means the Arizona Department of Environmental Quality and

“Administrator” means the Administrator of the United States

Environmental Protection Agency.

C. If the provisions or requirements of the regulations incorporated in this Section conflict with any of the remaining portions of this Title, the regulations incorporated in this Section

apply and take precedence.

Historical Note

Adopted effective October 7, 1994 (Supp. 94-4). 

Amended effective December 7, 1995 (Supp. 95-4). 

Amended effective December 4, 1997 (Supp. 97-4). 

Amended by final rulemaking at 5 A.A.R. 3221, effective 

August 12, 1999 (Supp. 99-3). Amended by final rulemaking at 6 A.A.R. 4170, effective October 11, 2000 

(Supp. 00-4). Amended by final rulemaking at 8 A.A.R. 

2543, effective May 24, 2002 (Supp. 02-2). Amended by 

final rulemaking at 10 A.A.R. 3281, effective September 

27, 2004 (Supp. 04-3). Amended by final rulemaking at 

11 A.A.R. 5504, effective February 4, 2006 (Supp. 05-4). 

Amended by final rulemaking at 13 A.A.R. 4199, effective January 5, 2008 (Supp. 07-4).

ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR 

SOURCES AND MAJOR MODIFICATIONS TO EXISTING 

MAJOR SOURCES

R18-2-401. Definitions

In addition to the definitions contained in Article 1 of this Chapter

and A.R.S. § 49-401.01, the following definitions apply to this Article:

1. “Adverse impact on visibility” means visibility impairment that interferes with the management, protection,

preservation, or enjoyment of the visitor’s visual experience of a Class I area, as determined according to R18-2-

410.

2. “Categorical sources” means the following classes of

sources:

a. Coal cleaning plants with thermal dryers; 

b. Kraft pulp mills; 

c. Portland cement plants; 

d. Primary zinc smelters; 

e. Iron and steel mills; 

f. Primary aluminum ore reduction plants; 

g. Primary copper smelters; 

h. Municipal incinerators capable of charging more

than 50 tons of refuse per day; 

i. Hydrofluoric, sulfuric, or nitric acid plants; 

j. Petroleum refineries; 

k. Lime plants; 

l. Phosphate rock processing plants; 

m. Coke oven batteries; 

n. Sulfur recovery plants; 

o. Carbon black plants using the furnace process; 

p. Primary lead smelters; 

q. Fuel conversion plants; 

r. Sintering plants; 

s. Secondary metal production plants; 

t. Chemical process plants; 

u. Fossil-fuel boilers, combinations thereof, totaling

more than 250 million Btu’s per hour heat input; 

v. Petroleum storage and transfer units with a total

storage capacity more than 300,000 barrels;

w. Taconite preprocessing plants;

x. Glass fiber processing plants;

y. Charcoal production plants;

z. Fossil-fuel-fired steam electric plants and combined

cycle gas turbines of more than 250 million Btu’s

per hour heat input.

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 58 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

the source or modification, conduct such ambient monitoring

as the Director determines is necessary to determine the effect

emissions from the new source or modification may have, or

are having, on air quality in any area.

G. Operations of monitoring stations. The owner or operator of a

new major source or major modification shall meet the

requirements of 40 CFR 58, Appendix B, during the operation

of monitoring stations for purposes of satisfying subsections

(B) through (F) above.

H. The requirements of subsections (B) through (G) above shall

not apply to a new major source or major modification to an

existing source with respect to monitoring for a particular pollutant if:

1. The emissions increase of the pollutant from the new

source or the net emissions increase of the pollutant from

the modification would cause, in any area, air quality

impacts less than the following amounts:

Carbon Monoxide - 575 μg/m3, eight-hour average;

Nitrogen dioxide - 14 μg/m3, annual average:

PM10 - 10 μg/m3

, 24-hour average;

Sulfur dioxide - 13 μg/m3

, 24-hour average;

Lead - 0.1 μg/m3

, 24-hour average;

Fluorides - 0.25 μg/m3

, 24-hour average;

Total reduced sulfur - 10 μg/m3, one-hour average;

Hydrogen sulfide - 0.04 μg/m3, one-hour average;

Reduced sulfur compounds - 10 μg/m3

, one-hour

average;

Ozone - increased emissions of less than 100 tons

per year of volatile organic compounds or oxides of

nitrogen; or,

2. The concentrations of the pollutant in the area that the

new source or modification would affect are less than the

concentrations listed in subsection (H)(1) above.

I. Any application for permit or permit revision under this Article to construct a new major source or major modification to a

source shall contain:

1. An analysis of the impairment to visibility, soils, and vegetation that would occur as a result of the new source or

modification and general commercial, residential, industrial, and other growth associated with the new source or

modification. The applicant need not provide an analysis

of the impact on vegetation having no significant commercial or recreational value.

2. An analysis of the air quality impact projected for the

area as a result of general commercial, residential, industrial, and other growth associated with the new source or

modification.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-407 renumbered without change as Section 

R18-2-407 (Supp. 87-3). Section R18-2-407 renumbered 

to R18-2-607, new Section R18-2-407 adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-408. Innovative Control Technology

A. Notwithstanding the provisions of R18-2-406(A)(1) through

(3), the owner or operator of a proposed new major source or

major modification may request that the Director approve a

system of innovative control technology rather than the best

available control technology requirements otherwise applicable to the new source or modification.

B. The Director shall approve the installation of a system of innovative control technology if the following conditions are met:

1. The owner or operator of the proposed source or modification satisfactorily demonstrates that the proposed control system would not cause or contribute to an

unreasonable risk to public health, welfare, or safety in its

operation or function;

2. The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which would

have been required under R18-2-406(A)(2) by a date

specified in the permit or permit revision under this Article for the source. Such date shall not be later than four

years from the time of start-up or seven years from the

issuance of a permit or permit revision under this Article;

3. The source or modification would meet requirements

equivalent to those in R18-2-406(A) based on the emissions rate that the stationary source employing the system

of innovative control technology would be required to

meet on the date specified in the permit or permit revision

under this Article.

4. Before the date specified in the permit or permit revision

under this Article, the source or modification would not:

a. Cause or contribute to any violation of an applicable

state ambient air quality standard; or

b. Impact any area where an applicable increment is

known to be violated.

5. All other applicable requirements including those for

public participation have been met.

6. The Director receives the consent of the governors of

other affected states.

7. The limits on pollutants contained in R18-2-218 for Class

I areas will be met for all periods during the life of the

source or modification. 

C. The Director shall withdraw any approval to employ a system

of innovative control technology made under this Section if:

1. The proposed system fails by the specified date to

achieve the required continuous emissions reduction rate;

or

2. The proposed system fails before the specified date so as

to contribute to an unreasonable risk to public health,

welfare, or safety; or

3. The Director decides at any time that the proposed system

is unlikely to achieve the required level of control or to

protect the public health, welfare, or safety.

D. If the new source or major modification fails to meet the

required level of continuous emissions reduction within the

specified time period, or if the approval is withdrawn in accordance with subsection (C) above, the Director may allow the

owner or operator of the source or modification up to an additional three years to meet the requirement for the application

of best available control technology through use of a demonstrated system of control.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective October 2, 1979 (Supp. 79-5). Former Section 

R9-3-408 renumbered without change as Section R18-2-

408 (Supp. 87-3). Section R18-2-408 renumbered to R18-

2-608, new Section R18-2-408 adopted effective November 15, 1993 (Supp. 93-4).

R18-2-409. Air Quality Models

A. Where the Director requires a person requesting a permit or

permit revision under this Article to perform air quality impact

modeling to obtain such permit or permit revision under this

Article, the modeling shall be performed in a manner consistent with the Guideline specified in R18-2-406(A)(6)(a).

B. Where the person requesting a permit or permit revision under

this Article can demonstrate that an air quality impact model

specified in the Guideline is inappropriate, the model may be

modified or another model substituted. However, before such

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 59 Supp. 10-2

modification or substitution can occur, the Director shall make

a written finding that:

1. No model in the Guideline is appropriate for a particular

permit or permit revision under this Article under consideration, or

2. The data base required for the appropriate model in the

Guideline is not available, and

3. The model proposed as a substitute or modification is

likely to produce results equal or superior to those

obtained by models in the Guideline, and

4. The model proposed as a substitute or modification has

been approved by the Administrator.

C. The substitution or modification of an air quality model under

this Section shall be included in the public notice under R18-2-

330(C).

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-409 renumbered without change as Section 

R18-2-409 (Supp. 87-3). Section R18-2-409 renumbered 

to R18-2-609, new Section R18-2-409 adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-410. Visibility Protection

A. For any new major source or major modification subject to the

provisions of this Chapter, no permit or permit revision under

this Article shall be issued to a person proposing to construct

or modify the source unless the applicant has provided:

1. An analysis of the anticipated impacts of the proposed

source on visibility in any Class I areas which may be

affected by the emissions from that source; and

2. Results of monitoring of visibility in any area near the

proposed source for such purposes and by such means as

the Director determines is necessary and appropriate.

B. A determination of an adverse impact on visibility shall be

made based on consideration of all of the following factors:

1. The times of visitor use of the area;

2. The frequency and timing of natural conditions in the

area that reduce visibility;

3. All of the following visibility impairment characteristics:

a. Geographic extent,

b. Intensity,

c. Duration,

d. Frequency,

e. Time of day;

4. The correlation between the characteristics listed in subsection (B)(3) and the factors described in subsections

(B)(1) and (2).

C. The Director shall not issue a permit or permit revision pursuant to this Article or Article 3 of this Chapter for any new

major source or major modification subject to this Chapter

unless the following requirements have been met:

1. The Director shall notify the individuals identified in subsection (C)(2) within 30 days of receipt of any advance

notification of any such permit or permit revision under

this Article.

2. Within 30 days of receipt of an application for a permit or

permit revision under this Article for a source whose

emissions may affect a Class I area, the Director shall

provide written notification of the application to the Federal Land Manager and the federal official charged with

direct responsibility for management of any lands within

any such area. The notice shall:

a. Include a copy of all information relevant to the permit or permit revision under this Article,

b. Include an analysis of the anticipated impacts of the

proposed source on visibility in any area which may

be affected by emissions from the source, and

c. Provide for no less than a 30-day period within

which written comments may be submitted.

3. The Director shall consider any analysis provided by the

Federal Land Manager that is received within the comment period provided in subsection (C)(2).

a. Where the Director finds that the analysis provided

by the Federal Land Manager does not demonstrate

to the satisfaction of the Director that an adverse

impact on visibility will result in the area, the Director shall, within the public notice required under

R18-2-330, either explain the decision or specify

where the explanation can be obtained.

b. When the Director finds that the analysis provided

by the Federal Land Manager demonstrates to the

satisfaction of the Director that an adverse impact on

visibility will result in the area, the Director shall not

issue a permit or permit revision under this Article

for the proposed major new source or major modification.

4. When the proposed permit decision is made, pursuant to

R18-2-304(J), and available for public review, the Director shall provide the individuals identified in subsection

(C)(2) with a copy of the proposed permit decision and

shall make available to them any materials used in making that determination.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former 

Section R9-3-410 renumbered without change as Section 

R18-2-410 (Supp. 87-3). Section R18-2-410 renumbered 

to R18-2-610, new Section R18-2-410 adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-411. Special Rule for Non-operating Sources of Sulfur

Dioxide in Sulfur Dioxide Nonattainment Areas

A. If an emissions unit that is a major source of sulfur dioxide

located in a sulfur dioxide nonattainment area has not operated

for more than 24 consecutive calendar months, it may only be

restarted if the owner or operator of such source does all of the

following:

1. Demonstrates, according to the air quality impact analysis requirements of R18-2-406(A)(5) and (6) that emissions from that unit, including fugitive emissions, will not

cause or contribute to a violation of the ambient standard

for sulfur dioxide in R18-2-202;

2. Demonstrates that startup of that unit will not require

reconstruction; and

3. Submits a startup plan that includes a source testing plan.

B. The demonstrations and plan shall be submitted to the Director

at least 180 days prior to the expected day when the restarting

of the non-operating unit will commence. The Director may

request additional information, as necessary, to evaluate the

submittals. The unit shall not be restarted unless the Director

approves the submittal.

C. If the Director disapproves a demonstration or plan required in

subsection (A), or such demonstration or plan, including additional information requested by the Director, is not submitted

in a timely manner, the source shall be required to obtain a permit pursuant to the requirements for a new major source or

major modification as contained in this Article.

D. The conduct of performance tests that comply with the

requirements of R18-2-312 and demonstrate compliance with

emission limits prescribed in a permit for that source or an

APPENDIX B - EXISTING STATUTES AND RULES
Supp. 10-2 Page 60 June 30, 2010

Title 18, Ch. 2 Arizona Administrative Code

Department of Environmental Quality – Air Pollution Control

applicable rule shall constitute operation of an emissions unit

for the purposes of this Section.

Historical Note

Adopted effective November 15, 1993 (Supp. 93-4).

ARTICLE 5. GENERAL PERMITS

R18-2-501. Applicability

A. The Director may issue general permits for a facility class that

contains 10 or more facilities that are similar in nature, have

substantially similar emissions, and would be subject to the

same or substantially similar requirements governing operations, emissions, monitoring, reporting, or recordkeeping.

“Similar in nature” refers to facility size, processes, and operating conditions.

B. The Director may issue general permits, in accordance with

subsection (A), with emission limitations, controls, or other

requirements that meet the requirements of R18-2-306.01. A

source that seeks to vary from such a general permit, and

obtain an emission limitation, control, or other requirement not

contained in that general permit, shall apply for a permit pursuant to Article 3 of this Chapter.

C. General permits shall not be issued for affected sources except

as provided in regulations promulgated by the Administrator

under Title IV of the Act.

D. Unless otherwise stated, the provisions of Article 3 shall apply

to general permits.

Historical Note

Former Section R18-2-501 renumbered to R18-2-502, 

new Section R18-2-501 adopted effective September 26, 

1990 (Supp. 90-3). Former Section R18-2-501 renumbered to R18-2-701; new Section adopted effective 

November 15, 1993 (Supp. 93-4). Amended effective 

August 1, 1995 (Supp. 95-3).

R18-2-502. General Permit Development

A. The Director may issue a general permit on the Director’s own

initiative or in response to a petition.

B. Any person may submit a petition to the Director requesting

the issuance of a general permit for a defined class of facilities.

The petition shall propose a particular class of facilities, and

list the approximate number of facilities in the proposed class

along with their size, processes, and operating conditions, and

demonstrate how the class meets the criteria for a general permit as specified in R18-2-501 and A.R.S. § 49-426(H). The

Director shall provide a written response to the petition within

120 days of receipt.

C. General permits shall be issued or denied for classes of facilities using the same engineering principles that applies to permits for individual sources and following the public notice

requirements of R18-2-504.

D. General permits shall include all of the following:

1. All elements contained in R18-2-306(A) except (2)(b)

and (6).

2. The process for individual sources to apply for coverage

under the general permit.

Historical Note

Former Section R9-3-501 repealed, new Section R9-3-

501 adopted effective May 14, 1979 (Supp. 79-1). 

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective July 9, 1980 (Supp. 80-4). Amended 

subsection (D) effective June 19, 1981 (Supp. 81-3). 

Amended subsections (C) and (D) effective February 2, 

1982 (Supp. 82-1). Amended subsection (D) effective 

May 25, 1982 (Supp. 82-3). Former Section R9-3-501 

renumbered without change as Section R18-2-501 (Supp. 

87-3). Former Section R18-2-502 repealed, new Section 

R18-2-502 renumbered from R18-2-501 and amended 

effective September 26, 1990 (Supp. 90-3). Former Section R18-2-502 renumbered to R18-2-702; new Section 

R18-2-502 adopted effective November 15, 1993 (Supp. 

93-4).

R18-2-503. Application for Coverage under General Permit

A. Once the Director has issued a general permit, any source

which is a member of the class of facilities covered by the general permit may apply to the Director for authority to operate

under the general permit. At the time the Director issues a general permit, the Director may also establish a specific application form with filing instructions for sources in the category

covered by the general permit. Applicants shall complete the

specific application form or, if none has been adopted, the

standard application form contained in Appendix 1 to this

Chapter. The specific application form shall, at a minimum,

require the applicant to submit the following information:

1. Information identifying and describing the source, its

processes, and operating conditions in sufficient detail to

allow the Director to determine qualification for, and to

assure compliance with, the general permit.

2. A compliance plan that meets the requirements of R18-2-

309.

B. For sources required to obtain a permit under Title V of the

Act, the Director shall provide the Administrator with a permit

application summary form and any relevant portion of the permit application and compliance plan. To the extent possible,

this information shall be provided in computer-readable format compatible with the Administrator’s national database

management system.

C. The Director shall act on the application for coverage under

the general permit as expeditiously as possible, but a final

decision shall be reached within 180 days. The source may

operate under the terms of its application during that time. If

the application for coverage is denied, the Director shall notify

the source that it shall apply for an individual permit within

180 days of receipt of notice. The Director may defer acting on

an application under this subsection if the Director has provided notice of intent to renew or not renew the permit.

D. The Director shall deny an application for coverage from any

Class I source that is subject to case-by-case standards or

requirements.

Historical Note

Former Section R9-3-503 repealed, new Section R9-3-

503 adopted effective May 14, 1979 (Supp. 79-1). 

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective July 9, 1980 (Supp. 80-4). Amended 

subsection (C), paragraph (6) effective June 19, 1981 

(Supp. 81-3). Amended subsection (C) effective September 22, 1983 (Supp. 83-5). Former Section R9-3-503 

renumbered without change as Section R18-2-503 (Supp. 

87-3). Amended effective September 26, 1990 (Supp. 90-

3). Former Section R18-2-503 renumbered to R18-2-703; 

new Section R18-2-503 adopted effective November 15, 

1993 (Supp. 93-4).

R18-2-504. Public Notice

A. This Section applies to issuance, revision, or renewal of a general permit.

B. The Director shall provide public notice for any proposed new

general permit, for any revision of an existing general permit,

and for renewal of an existing general permit.

C. The Director shall publish notice of the proposed general permit once each week for two consecutive weeks in a newspaper

of general circulation in each county and shall provide at least

APPENDIX B - EXISTING STATUTES AND RULES
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality – Air Pollution Control

June 30, 2010 Page 61 Supp. 10-2

30 days from the date of the first notice for public comment.

The notice shall describe the following:

1. The proposed permit;

2. The category of sources that would be affected;

3. The air contaminants which the Director expects to be

emitted by a typical facility in the class and the class as a

whole;

4. The Director’s proposed actions and effective date for the

actions;

5. Locations where documents relevant to the proposed permit will be available during normal business hours;

6. The name, address, and telephone number of a person

within the Department who may be contacted for further

information;

7. The address where any person may submit comments or

request a public hearing and the date and time by which

comments or a public hearing request are required to be

received;

8. The process by which sources may obtain authorization

to operate under the general permit.

D. For general permits under which operation may be authorized

in lieu of Class I permits, the Director shall give notice of the

proposed general permit to each affected state at the same time

that the proposed general permit goes out for public notice.

The Director shall provide the proposed final permit to the

Administrator after public and affected state review. No Class

I permit shall be issued if the Administrator properly objects to

its issuance in writing within 45 days from receipt of the proposed final permit and any necessary supporting information

from the Director.

E. Written comments to the Director shall include the name of the

person and the person’s agent or attorney and shall clearly set

forth reasons why the general permit should or should not be

issued pursuant to the criteria for issuance in A.R.S. §§ 49-426

and 49-427 and this Chapter.

F. At the time a general permit is issued, the Director shall make

available a response to all relevant comments on the proposed

permit raised during the public comment period and during

any requested public hearing. The response shall specify

which provisions, if any, of the proposed permit have been

changed and the reason for the changes. The Director shall

also notify in writing any petitioner and each person who has

submitted written comments on the proposed general permit or

requested notice of the final permit decision.

Historical Note

Former Section R9-3-504 repealed, new Section R9-3-

504 adopted effective May 14, 1979 (Supp. 79-1). 

Amended effective October 2, 1979 (Supp. 79-5). 

Amended effective July 9, 1980 (Supp. 80-4). Former 

Section R9-3-504 renumbered without change as Section 

R18-2-504 (Supp. 87-3). Amended effective September 

26, 1990 (Supp. 90-3). Former Section R18-2-504 

renumbered to R18-2-704; new Section R18-2-504 

adopted effective November 15, 1993 (Supp. 93-4).

R18-2-505. General Permit Renewal

The Director shall review and may renew general permits every

five years. A source’s authorization to operate under a general permit shall coincide with the term of the general permit regardless of

when the authorization began during the five-year period, except as

provided in R18-2-510(C). In addition to the public notice required

to issue a proposed permit under R18-2-504, the Director shall

notify in writing all sources who have been granted, or who have

applications pending for, authorization to operate under the permit.

The written notice shall describe the source’s duty to reapply and

may include requests for information required under the proposed

permit.

Historical Note

Former Section R9-3-1007 renumbered effective January 

13, 1976 (Supp. 76-1). Former Section R9-3-505 

repealed, new Section R9-3-505 adopted effective May 

14, 1979 (Supp. 79-1). Editorial corrections, subsection 

(B), paragraph (5), and subsection (D), paragraph (1), 

subparagraph (d) (Supp. 80-2). Amended effective July 9, 

1980 (Supp. 80-4). Amended subsection (B) effective 

May 28, 1982 (Supp. 82-3). Amended subsection (B) 

effective September 22, 1983 (Supp. 83-5). Former Section R9-3-505 renumbered without change as Section 

R18-2-505 (Supp. 87-3). Amended effective September 

26, 1990 (Supp. 90-3). Former Section R18-2-505 

renumbered to R18-2-705; new Section R18-2-505 

adopted effective November 15, 1993 (Supp. 93-4).

R18-2-506. Relationship to Individual Permits

Any source covered under a general permit may request to be

excluded from coverage by applying for an individual source permit. Coverage under the general permit shall terminate on the date

the individual permit is issued.

Historical Note

Former Section R9-3-1008 renumbered effective January 

13, 1976 (Supp. 76-1). Former Section R9-3-506 

repealed, new Section R9-3-506 adopted effective May 

14, 1979 (Supp. 79-1). Amended effective July 9, 1980 

(Supp. 80-4). Amended subsection (C), paragraph (1) 

effective June 19, 1981 (Supp. 81-3). Former Section R9-

3-506 renumbered without change as Section R18-2-506 

(Supp. 87-3). Amended effective September 26, 1990 

(Supp. 90-3). Former Section R18-2-506 renumbered to 

R18-2-706; new Section R18-2-506 adopted effective 

November 15, 1993 (Supp. 93-4).

R18-2-507. General Permit Variances

A. Where MACT (maximum achievable control technology) or

HAPRACT (hazardous air pollutant reasonably available control technology) has been established in a general permit for a

source category designated under R18-2-1702, the owner or

operator of a source within that source category may apply for

a variance from the standard by demonstrating compliance

with R18-2-1708 at the time the source applies for coverage

under the general permit.

B. If the owner or operator makes the showing required by R18-

2-1708 and otherwise qualifies for the general permit, the

Director shall, in accordance with the procedures established

pursuant to this Article, approve the application and authorize

operation under a variance from the standard of the general

permit. 

C. Except as modified by the variance, the source shall comply

with all conditions of the general permit.

D. A proposed variance to a standard in a general permit shall be

subject to the public notice requirements of R18-2-330.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended 

effective July 9, 1980 (Supp. 80-4). Former Section R9-3-

507 renumbered without change as Section R18-2-507 

(Supp. 87-3). Amended effective September 26, 1990 

(Supp. 90-3). Former Section R18-2-507 renumbered to 

R18-2-707; new Section R18-2-507 adopted effective 

November 15, 1993 (Supp. 93-4). Amended by final rulemaking at 12 A.A.R. 1953, effective January 1, 2007 

(Supp. 06-2).

APPENDIX B - EXISTING STATUTES AND RULES
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49-104. Powers and duties of the department and director

A. The department shall:

1. Formulate policies, plans and programs to implement this title to protect the

environment.

2. Stimulate and encourage all local, state, regional and federal governmental

agencies and all private persons and enterprises that have similar and related

objectives and purposes, cooperate with those agencies, persons and enterprises

and correlate department plans, programs and operations with those of the agencies,

persons and enterprises.

3. Conduct research on its own initiative or at the request of the governor, the

legislature or state or local agencies pertaining to any department objectives.

4. Provide information and advice on request of any local, state or federal agencies

and private persons and business enterprises on matters within the scope of the

department.

5. Consult with and make recommendations to the governor and the legislature on

all matters concerning department objectives.

6. Promote and coordinate the management of air resources to assure their

protection, enhancement and balanced utilization consistent with the environmental

policy of this state.

7. Promote and coordinate the protection and enhancement of the quality of water

resources consistent with the environmental policy of this state.

8. Encourage industrial, commercial, residential and community development that

maximizes environmental benefits and minimizes the effects of less desirable

environmental conditions.

9. Assure the preservation and enhancement of natural beauty and man-made

scenic qualities.

10. Provide for the prevention and abatement of all water and air pollution including

that related to particulates, gases, dust, vapors, noise, radiation, odor, nutrients and

heated liquids in accordance with article 3 of this chapter and chapters 2 and 3 of

this title.

11. Promote and recommend methods for the recovery, recycling and reuse or, if

recycling is not possible, the disposal of solid wastes consistent with sound health,

scenic and environmental quality policies. Beginning in 2014, the department shall

report annually on its revenues and expenditures relating to the solid and hazardous

waste programs overseen or administered by the department.

12. Prevent pollution through the regulation of the storage, handling and

transportation of solids, liquids and gases that may cause or contribute to pollution.

13. Promote the restoration and reclamation of degraded or despoiled areas and

natural resources.

14. Assist the department of health services in recruiting and training state, local and

district health department personnel.

15. Participate in the state civil defense program and develop the necessary

organization and facilities to meet wartime or other disasters.

16. Cooperate with the Arizona-Mexico commission in the governor's office and with

researchers at universities in this state to collect data and conduct projects in the

United States and Mexico on issues that are within the scope of the department's

duties and that relate to quality of life, trade and economic development in this state

in a manner that will help the Arizona-Mexico commission to assess and enhance the

economic competitiveness of this state and of the Arizona-Mexico region.

17. Unless specifically authorized by the legislature, ensure that state laws, rules,

standards, permits, variances and orders are adopted and construed to be consistent

with and no more stringent than the corresponding federal law that addresses the

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APPENDIX C - AUTHORIZING STATUTES
same subject matter. This provision shall not be construed to adversely affect

standards adopted by an Indian tribe under federal law.

B. The department, through the director, shall:

1. Contract for the services of outside advisers, consultants and aides reasonably

necessary or desirable to enable the department to adequately perform its duties.

2. Contract and incur obligations reasonably necessary or desirable within the

general scope of department activities and operations to enable the department to

adequately perform its duties.

3. Utilize any medium of communication, publication and exhibition when

disseminating information, advertising and publicity in any field of its purposes,

objectives or duties.

4. Adopt procedural rules that are necessary to implement the authority granted

under this title, but that are not inconsistent with other provisions of this title.

5. Contract with other agencies, including laboratories, in furthering any department

program.

6. Use monies, facilities or services to provide matching contributions under federal

or other programs that further the objectives and programs of the department.

7. Accept gifts, grants, matching monies or direct payments from public or private

agencies or private persons and enterprises for department services and publications

and to conduct programs that are consistent with the general purposes and

objectives of this chapter. Monies received pursuant to this paragraph shall be

deposited in the department fund corresponding to the service, publication or

program provided.

8. Provide for the examination of any premises if the director has reasonable cause

to believe that a violation of any environmental law or rule exists or is being

committed on the premises. The director shall give the owner or operator the

opportunity for its representative to accompany the director on an examination of

those premises. Within forty-five days after the date of the examination, the

department shall provide to the owner or operator a copy of any report produced as

a result of any examination of the premises.

9. Supervise sanitary engineering facilities and projects in this state, authority for

which is vested in the department, and own or lease land on which sanitary

engineering facilities are located, and operate the facilities, if the director determines

that owning, leasing or operating is necessary for the public health, safety or

welfare.

10. Adopt and enforce rules relating to approving design documents for constructing,

improving and operating sanitary engineering and other facilities for disposing of

solid, liquid or gaseous deleterious matter.

11. Define and prescribe reasonably necessary rules regarding the water supply,

sewage disposal and garbage collection and disposal for subdivisions. The rules shall:

(a) Provide for minimum sanitary facilities to be installed in the subdivision and may

require that water systems plan for future needs and be of adequate size and

capacity to deliver specified minimum quantities of drinking water and to treat all

sewage.

(b) Provide that the design documents showing or describing the water supply,

sewage disposal and garbage collection facilities be submitted with a fee to the

department for review and that no lots in any subdivision be offered for sale before

compliance with the standards and rules has been demonstrated by approval of the

design documents by the department.

12. Prescribe reasonably necessary measures to prevent pollution of water used in

public or semipublic swimming pools and bathing places and to prevent deleterious

conditions at such places. The rules shall prescribe minimum standards for the design

of and for sanitary conditions at any public or semipublic swimming pool or bathing

place and provide for abatement as public nuisances of premises and facilities that do

not comply with the minimum standards. The rules shall be developed in cooperation

with the director of the department of health services and shall be consistent with

the rules adopted by the director of the department of health services pursuant to

section 36-136, subsection H, paragraph 10.

13. Prescribe reasonable rules regarding sewage collection, treatment, disposal and

reclamation systems to prevent the transmission of sewage borne or insect borne

diseases. The rules shall:

(a) Prescribe minimum standards for the design of sewage collection systems and

treatment, disposal and reclamation systems and for operating the systems.

(b) Provide for inspecting the premises, systems and installations and for abating as

a public nuisance any collection system, process, treatment plant, disposal system or

reclamation system that does not comply with the minimum standards.

(c) Require that design documents for all sewage collection systems, sewage

collection system extensions, treatment plants, processes, devices, equipment,

disposal systems, on-site wastewater treatment facilities and reclamation systems be

submitted with a fee for review to the department and may require that the design

documents anticipate and provide for future sewage treatment needs.

(d) Require that construction, reconstruction, installation or initiation of any sewage

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APPENDIX C - AUTHORIZING STATUTES
collection system, sewage collection system extension, treatment plant, process,

device, equipment, disposal system, on-site wastewater treatment facility or

reclamation system conform with applicable requirements.

14. Prescribe reasonably necessary rules regarding excreta storage, handling,

treatment, transportation and disposal. The rules shall:

(a) Prescribe minimum standards for human excreta storage, handling, treatment,

transportation and disposal and shall provide for inspection of premises, processes

and vehicles and for abating as public nuisances any premises, processes or vehicles

that do not comply with the minimum standards.

(b) Provide that vehicles transporting human excreta from privies, septic tanks,

cesspools and other treatment processes shall be licensed by the department subject

to compliance with the rules. The department may require payment of a fee as a

condition of licensure. After the effective date of this amendment to this section, the

department shall establish by rule a fee as a condition of licensure, including a

maximum fee. As part of the rule making process, there must be public notice and

comment and a review of the rule by the joint legislative budget committee. After

September 30, 2013, the department shall not increase that fee by rule without

specific statutory authority for the increase. The fees shall be deposited, pursuant to

sections 35-146 and 35-147, in the solid waste fee fund established by section

49-881.

15. Perform the responsibilities of implementing and maintaining a data automation

management system to support the reporting requirements of title III of the

superfund amendments and reauthorization act of 1986 (P.L. 99-499) and title 26,

chapter 2, article 3.

16. Approve remediation levels pursuant to article 4 of this chapter.

17. Establish or revise fees by rule pursuant to the authority granted under title 44,

chapter 9, article 8 and chapters 4 and 5 of this title for the department to

adequately perform its duties. All fees shall be fairly assessed and impose the least

burden and cost to the parties subject to the fees. In establishing or revising fees,

the department shall base the fees on:

(a) The direct and indirect costs of the department's relevant duties, including

employees salaries and benefits, professional and outside services, equipment,

in-state travel and other necessary operational expenses directly related to issuing

licenses as defined in title 41, chapter 6 and enforcing the requirements of the

applicable regulatory program.

(b) The availability of other funds for the duties performed.

(c) The impact of the fees on the parties subject to the fees.

(d) The fees charged for similar duties performed by the department, other agencies

and the private sector.

C. The department may:

1. Charge fees to cover the costs of all permits and inspections it performs to ensure

compliance with rules adopted under section 49-203, except that state agencies are

exempt from paying the fees. Monies collected pursuant to this subsection shall be

deposited, pursuant to sections 35-146 and 35-147, in the water quality fee fund

established by section 49-210.

2. Contract with private consultants for the purposes of assisting the department in

reviewing applications for licenses, permits or other authorizations to determine

whether an applicant meets the criteria for issuance of the license, permit or other

authorization. If the department contracts with a consultant under this paragraph,

an applicant may request that the department expedite the application review by

requesting that the department use the services of the consultant and by agreeing to

pay the department the costs of the consultant's services. Notwithstanding any other

law, monies paid by applicants for expedited reviews pursuant to this paragraph are

appropriated to the department for use in paying consultants for services.

D. The director may:

1. If the director has reasonable cause to believe that a violation of any

environmental law or rule exists or is being committed, inspect any person or

property in transit through this state and any vehicle in which the person or property

is being transported and detain or disinfect the person, property or vehicle as

reasonably necessary to protect the environment if a violation exists.

2. Authorize in writing any qualified officer or employee in the department to perform

any act that the director is authorized or required to do by law.

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APPENDIX C - AUTHORIZING STATUTES
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49-106. Statewide application of rules

The rules adopted by the department apply and shall be observed throughout this

state, or as provided by their terms, and the appropriate local officer, council or

board shall enforce them. This section does not limit the authority of local governing

bodies to adopt ordinances and rules within their respective jurisdictions if those

ordinances and rules do not conflict with state law and are equal to or more

restrictive than the rules of the department, but this section does not grant local

governing bodies any authority not otherwise provided by separate state law.

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APPENDIX C - AUTHORIZING STATUTES
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49-404. State implementation plan

A. The director shall maintain a state implementation plan that provides for

implementation, maintenance and enforcement of national ambient air quality

standards and protection of visibility as required by the clean air act.

B. The director may adopt rules that describe procedures for adoption of revisions to

the state implementation plan.

C. The state implementation plan and all revisions adopted before September 30,

1992 remain in effect according to their terms, except to the extent otherwise

provided by the clean air act, inconsistent with any provision of the clean air act, or

revised by the administrator. No control requirement in effect, or required to be

adopted by an order, settlement agreement or plan in effect, before the enactment

of the clean air act in any area which is a nonattainment or maintenance area for

any air pollutant may be modified after enactment in any manner unless the

modification insures equivalent or greater emission reductions of the air pollutant.

The director shall evaluate and adopt revisions to the plan in conformity with federal

regulations and guidelines promulgated by the administrator for those purposes until

the rules required by subsection B are effective.

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APPENDIX C - AUTHORIZING STATUTES
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49-406. Nonattainment area plan

A. For any ozone, carbon monoxide or particulate nonattainment or maintenance

area the governor shall certify the metropolitan planning organization designated to

conduct the continuing, cooperative and comprehensive transportation planning

process for that area under 23 United States Code section 134 as the agency

responsible for the development of a nonattainment or maintenance area plan for

that area.

B. For any ozone, carbon monoxide or particulate nonattainment or maintenance

area for which no metropolitan planning organization exists, the department shall be

certified as the agency responsible for development of a nonattainment or

maintenance area plan for that area.

C. For any ozone, carbon monoxide or particulate nonattainment or maintenance

area, the department, the planning agency certified pursuant to subsection A of this

section on behalf of elected officials of affected local government, the county air

pollution control department or district, and the department of transportation shall,

by November 15, 1992, and from time to time as necessary, jointly review and

update planning procedures or develop new procedures.

D. In preparing the procedures described in subsection C of this section, the

department, the planning agency certified pursuant to subsection A of this section on

behalf of elected officials of affected local government, the county air pollution

control department or district, and the department of transportation shall determine

which elements of each revised implementation plan will be developed, adopted, and

implemented, through means including enforcement, by the state and which by local

governments or regional agencies, or any combination of local governments, regional

agencies or the state.

E. The department, the planning agency certified pursuant to subsection A of this

section on behalf of elected officials of affected local government, the county air

pollution control department or district, and the department of transportation shall

enter into a memorandum of agreement for the purpose of coordinating the

implementation of the procedures described in subsection C and D of this section.

F. At a minimum, the memorandum of agreement shall contain:

1. The relevant responsibilities and authorities of each of the coordinating agencies.

2. As appropriate, procedures, schedules and responsibilities for development of

nonattainment or maintenance area plans or plan revisions and for determining

reasonable further progress.

3. Assurances for adequate plan implementation.

4. Procedures and responsibilities for tracking plan implementation.

5. Responsibilities for preparing demographic projections including land use, housing,

and employment.

6. Coordination with transportation programs.

7. Procedures and responsibilities for adoption of control measures and emissions

limitations.

8. Responsibilities for collecting air quality, transportation and emissions data.

9. Responsibility for conducting air quality modeling.

10. Responsibility for administering and enforcing stationary source controls.

11. Provisions for the timely and periodic sharing of all data and information among

the signatories relating to:

(a) Demographics.

(b) Transportation.

(c) Emissions inventories.

(d) Assumptions used in developing the model.

(e) Results of modeling done in support of the plan.

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APPENDIX C - AUTHORIZING STATUTES
(f) Monitoring data.

G. Each agency that commits to implement any emission limitation or other control

measure, means or technique contained in the implementation plan shall describe

that commitment in a resolution adopted by the appropriate governing body of the

agency. The resolution shall specify the following:

1. Its authority for implementing the limitation or measure as provided in statute,

ordinance or rule.

2. A program for the enforcement of the limitation or measure.

3. The level of personnel and funding allocated to the implementation of the

measure.

H. The state, in accordance with the rules adopted pursuant to section 49-404, and

the governing body of the metropolitan planning organization shall adopt each

nonattainment or maintenance area plan developed by a certified metropolitan

planning organization. The adopted nonattainment or maintenance area plan shall be

transmitted to the department for inclusion in the state implementation plan

provided for under section 49-404.

I. After adoption of a nonattainment or maintenance area plan, if on the basis of the

reasonable further progress determination described in subsection F of this section or

other information, the control officer determines that any person has failed to

implement an emission limitation or other control measure, means or technique as

described in the resolution adopted pursuant to subsection G of this section, the

control officer shall issue a written finding to the person, and shall provide an

opportunity to confer. If the control officer subsequently determines that the failure

has not been corrected, the county attorney, at the request of the control officer,

shall file an action in superior court for a preliminary injunction, a permanent

injunction, or any other relief provided by law.

J. After adoption of a nonattainment or maintenance area plan, if, on the basis of the

reasonable further progress determination described in subsection F of this section or

other information, the director determines that any person has failed to implement

an emission limitation or other control measure, means or technique as described in

the resolution adopted pursuant to subsection G of this section, and that the control

officer has failed to act pursuant to subsection I of this section, the director shall

issue a written finding to the person and shall provide an opportunity to confer. If

the director subsequently determines that the failure has not been corrected, the

attorney general, at the request of the director, shall file an action in superior court

for a preliminary injunction, a permanent injunction, or any other relief provided by

law.

K. Notwithstanding subsections A and B of this section, in any metropolitan area with

a metropolitan statistical area population of less than two hundred fifty thousand

persons, the governor shall designate an agency that meets the criteria of section

174 of the clean air act and that is recommended by the city that causes the

metropolitan area to exist and the affected county. That agency shall prepare and

adopt the nonattainment or maintenance area plan. If the governor does not

designate an agency, the department shall be certified as the agency responsible for

the development of a nonattainment or maintenance area plan for that area.

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APPENDIX C - AUTHORIZING STATUTES
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49-425. Rules; hearing

A. The director shall adopt such rules as he determines are necessary and feasible to

reduce the release into the atmosphere of air contaminants originating within the

territorial limits of the state or any portion thereof and shall adopt, modify, and

amend reasonable standards for the quality of, and emissions into, the ambient air of

the state for the prevention, control and abatement of air pollution. Additional

standards shall be established for particulate matter emissions, sulfur dioxide

emissions, and other air contaminant emissions determined to be necessary and

feasible for the prevention, control and abatement of air pollution. In fixing such

ambient air quality standards, emission standards or standards of performance, the

director shall give consideration but shall not be limited to the relevant factors

prescribed by the clean air act.

B. No rule may be enacted or amended except after the director first holds a public

hearing after twenty days' notice of such hearing. The proposed rule, or any

proposed amendment of a rule, shall be made available to the public at the time of

notice of such hearing.

C. The department shall enforce the rules adopted by the director.

D. All rules enacted pursuant to this section shall be made available to the public at a

reasonable charge upon request.

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APPENDIX C - AUTHORIZING STATUTES
Guidance on Assuring Compliance with 

SIP Rule 9-3-301 and Major NSR 

Arizona Department of Environmental Quality 

Air Quality Division 

June 1, 2007 

Introduction 

The purpose of this guidance document is to ensure that ADEQ’s administration of the current 

unitary permit program is consistent with State Implementation Plan (SIP) Rule R9-3-301, which 

requires the issuance of an installation permit before the construction of certain sources and 

changes to sources may begin. Because EPA has not yet approved ADEQ’s current permit 

program into the SIP, R9-3-301 remains enforceable as a matter of both state and federal law. 

ADEQ’s current rules require issuance of a permit before construction of a new source subject to 

SIP rule R9-3-301 may proceed. For the most part, current rules also require issuance of a permit 

revision that more than meets the requirements of an installation permit under the SIP rule before 

the changes to an existing source regulated by R9-3-301 may take place. In nearly every instance 

when public notice and comment and an opportunity for public hearing are mandated by SIP 

Rule R9-3-301, they are also required by current rules. 

There are, however, a few changes to existing sources that require an installation permit under 

R9-3-301 but that the permitting flexibility provisions of current rules would allow to proceed 

without ADEQ’s prior approval. In addition, current rules in a very few instances may allow a 

change to proceed without the opportunity for public involvement mandated by the SIP. 

This guidance sets forth procedures for ensuring that ADEQ issues a permit revision whenever 

an installation permit would be required under R9-3-301 and provides an opportunity for public 

comment and a hearing when mandated by the SIP. 

In addition, this guidance establishes a process to ensure that changes subject to major new 

source review (NSR) are not inadvertently allowed to begin construction under A.A.C. R18-2-

317 or R18-2-319 without a significant permit revision meeting major NSR requirements. 

Comparison of SIP and Current Rules 

SIP Rule R9-3-301 

SIP Rule R9-3-301 requires installation permits for the following activities: 

1. the construction or major modification of a major source, which requires a “Class A” 

installation permit; 

2. the construction or “alteration” of a source that emits five or more tons of lead per year, 

which also requires a “Class A” installation permit; 

3. the construction or modification of air pollution control equipment, which requires a “Class 

B” installation permit; 

4. the construction of a minor source, which requires a “Class C” installation permit. 

APPENDIX D - GUIDANCE ON SIP COMPLIANCE
Guidance on Assuring Compliance with 

SIP Rule 9-3-301 and Major NSR 

Arizona Department of Environmental Quality

Air Quality Division

Page 2 of 4 June 1, 2007 

SIP Rule 9-3-101 includes the definition of major source found in nonattainment NSR and 

prevention of significant deterioration (PSD) rules but also defines the term to cover "any source 

with the capability of generating more than a total of seventy-five (75) tons of air contaminants 

per day." ADEQ has concluded that the correct reading of “capable of generating” is capable of 

emitting without controls. It is possible that a title V source could fail to qualify as major under 

the nonattainment NSR/PSD definition but still be major under the 75-tons-per-day definition.1

Public notice and an opportunity to comment are required for Class A installation permits but not 

for Class B or C permits. Thus, the activities described in paragraphs 1 and 2 above require both 

advance approval by ADEQ and an opportunity for public notice and comment. The activities 

described in paragraphs 3 and 4 require advance approval but not public participation. 

Current NSR Rules 

Under current rules a permit is required prior to the construction of any new source subject to 

Title V. A.A.C. R18-2-101(64), R18-2-302(B)(1)(a). A significant permit revision is required for 

the construction or major modification of a major source subject to nonattainment NSR or PSD, 

including any source that has the potential to emit 5 or more tons per year (TPY) of lead. A.A.C. 

R18-2-319(A)(5), R18-2-320(A), R18-2-401(9)(e). 

Current rules thus require new permits or significant revisions for the vast majority of activities 

that require Class A or C installation permits under the SIP. The application, review and public 

participation requirements of current rules for permits and significant revisions exceed the 

equivalent requirements of the SIP. In most cases, then, compliance with current rules shall 

assure compliance with the SIP. 

There are two categories of activities, however, that require Class A permits under the SIP but do 

not require permits or significant revisions under current rules. 

First, current rules do not require a permit or permit revision for an “alteration” other than a 

major modification to a source with the potential to emit 5 or more TPY of lead. 

Second, a significant increase in actual emissions at a 75-tons-per-day major source does not 

require a significant revision if (a) the source is not major under nonattainment NSR/PSD rules 

and (b) the increase in the source’s potential emissions is less than significant. See A.A.C. R18-

2-319(A)(7), R18-2-320(A) (significant increase in potential to emit requires significant 

revision).2

 In order to assure compliance with the SIP, these two categories of changes should be 

processed as significant revisions. 

In addition, current rules do not include any equivalent to the SIP’s Class B permits for the 

construction or modification of pollution control equipment. Depending on the circumstances, 

these changes might be eligible to proceed with a minor permit revision under A.A.C. R18-2-319 

 

1

 Consider, for example, a source in an attainment area that had the capability of generating 37.5 tons per day each 

of PM10 and SO2 and had in place federally enforceable controls for both pollutants with a control efficiency of 98.2 

percent. Assume the source is not on the list of source categories with a PSD major source threshold of 100 TPY. 

The source would be capable of generating 75 tons per day of air contaminants and would therefore be subject to the 

SIP’s Class A permit requirements. The source’s potential to emit would be 246 tons per year, above the title V 

threshold of 100 tons per year, but below the PSD major source threshold of 250 tons per year. 

2

 An increase in actual emissions can exceed the corresponding increase in potential to emit when, for example, a 

source with an emissions cap operates at less than full capacity and therefore has actual emissions below the cap for 

the two years preceding the relevant change. If the change does not necessitate an increase in the cap but will result 

in increased utilization, it will produce an increase in actual, but not potential, emissions. 

APPENDIX D - GUIDANCE ON SIP COMPLIANCE
Guidance on Assuring Compliance with 

SIP Rule 9-3-301 and Major NSR 

Arizona Department of Environmental Quality

Air Quality Division

Page 3 of 4 June 1, 2007 

or on seven days advance notice under A.A.C. R18-2-317. The minor permit revision rule allows 

sources to proceed with changes on filing an application, which is inconsistent with the SIP’s 

requirement that a permit be issued before the change may be implemented. A.A.C. R18-2-

319(G). With that exception, compliance with minor permit revision procedures would be 

adequate to assure compliance with the SIP, since Class B permits do not require public 

participation. 

The SIP rules do not define “alteration” or “modification.” SIP rule 9-3-101, however, defines 

“major alteration” and “major modification” to mean a physical or operational change that 

results in a significant net emissions increase. As reflected in the procedures section below, 

ADEQ interprets the terms alteration and modification to mean a physical or operational change 

that results in any increase in emissions. 

Procedures 

Compliance with the SIP 

ADEQ’s current permit rules notwithstanding, a significant or minor permit revision shall be 

required for changes at a title V source as indicated below: 

Type of Change Permit Revision Required 

A major modification, as defined in A.A.C. R18-2-

101(63), to a source that is capable of generating, 

without taking controls into account, 75 tons per day of 

all air contaminants 

Significant 

A physical or operational change that results in any

increase in emissions at a source with the potential to 

emit 5 or more tons per year of lead 

Significant 

Construction of air pollution control equipment Minor 

A physical or operational change to air pollution control 

equipment that results in any increase in emissions 

Minor 

Notwithstanding A.A.C. R18-2-319(G), when a minor permit revision is required by the above 

table, the change shall not proceed until ADEQ has issued a minor revision authorizing the 

change. 

Reviewing Minor Revision Applications and 317 Notices for SIP and Major 

NSR Applicability 

Whenever ADEQ receives an application from a Title V source for a minor permit revision or 

notice under A.A.C. R18-2-317 (“317 notice”), a permit engineer shall review the notice within 

seven days or the application within the completeness review time frame, not to exceed 41 days. 

The review shall assure that the notice or application contains adequate information, including 

reliable emission calculations, to determine whether SIP Rule 9-3-301 or major NSR 

requirements may apply to the change covered by the application or notice. 

APPENDIX D - GUIDANCE ON SIP COMPLIANCE
Guidance on Assuring Compliance with 

SIP Rule 9-3-301 and Major NSR 

Arizona Department of Environmental Quality

Air Quality Division

Page 4 of 4 June 1, 2007 

If the engineer determines that adequate information is not included, the engineer shall send a 

letter to the person who submitted the application or notice (the “applicant”) requesting the 

necessary additional information. The letter shall include a copy of this guidance and the 

following warning: 

If you begin construction or implementation of the change described 

in your [notice/application] before ADEQ has approved it, and ADEQ 

determines that the change is subject to major new source review or 

to the state implementation plan requirements described in the 

enclosed guidance, you shall be subject to an enforcement action, 

which may include the imposition of civil penalties of up to $10,000 

per day for each day the violation continues. 

On determining that the SIP requirements described above or major NSR requirements apply to a 

minor permit revision application or 317 notice for a Title V source, the permit engineer shall 

prepare a draft letter to the applicant for signature by the Air Quality Permit Section Manager. 

The letter shall advise the applicant that the change requires a significant or minor revision, as 

appropriate, and may not proceed without ADEQ’s advance approval. If, after consultation with 

the Air Quality Division Director, the Permit Section Manager agrees with the permit engineer’s 

determination, the Manager shall send the letter to the applicant. 

For each minor permit revision application and 317 notice submitted by a Title V source, the 

permit engineer shall add appropriate documentation to a Technical Support Document (in the 

case of a minor revision) or a memorandum routed through management to the file (in the case 

of a 317 notice). The TSD or memorandum shall describe the analysis that was performed and 

ADEQ’s justification for its conclusion about the applicability of SIP Rule 9-3-301 and major 

NSR to the change covered by the application or notice. 

Implementation 

A copy of this guidance shall be mailed to all Title V sources. 

A copy of this guidance shall be distributed to all current Air Quality Division permit engineers 

immediately after its issuance and to all new permit engineers as part of their orientation. 

The guidance shall be discussed at the first meeting of the Air Quality Permit Section following 

its issuance. 

A copy of the guidance shall be posted to ADEQ’s web site on the page containing air quality 

permit application forms. The URL for that page as of the date of guidance issuance is: 

http://www.azdeq.gov/function/forms/appsair.html#permit

A copy of the guidance shall be provided to any person requesting a minor permit revision 

application form for a Title V source. 

APPENDIX D - GUIDANCE ON SIP COMPLIANCE
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41-1013. Register

A. The secretary of state shall publish the register at least once each month, including the

information which is provided under subsection B of this section and which is filed with

the secretary of state during the preceding thirty days. The secretary of state shall

publish an index to the register at least twice each year.

B. The register shall contain:

1. A schedule of the time, date and place of all hearings on proposed repeals, makings or

amendments of rules.

2. Each governor's executive order.

3. Each governor's proclamation of general applicability, and each statement filed by the

governor in granting a commutation, pardon or reprieve or stay or suspension of

execution where a sentence of death is imposed.

4. A summary of each attorney general's opinion.

5. Each governor's appointment of state officials and board and commission members.

6. A table of contents.

7. The notice and agency summary of each docket opening.

8. The full text and accompanying preamble of each proposed rule.

9. The full text and accompanying preamble of each final rule.

10. The full text and accompanying preamble of each emergency rule.

11. Supplemental notices of a proposed rule.

12. Proposed and final notices of expedited rule making and notices that an objection

was received regarding a proposed expedited rule making.

13. A summary of council action on each rule.

14. The full text of any exempt final rule filed with the secretary of state pursuant to

section 41-1005, subsection C.

15. The notice and a summary of substantive policy statements and notice and a

summary of any guidance document publication or revision submitted by an agency. The

notice for a substantive policy statement shall contain the website address where the full

text of the document is available, if practicable.

16. Notices of oral proceedings, public workshops or other meetings on an open rule

making docket.

C. The register shall be available by subscription and for single copy purchase. The charge

for each register or periodic subscription shall be a reasonable charge, not to exceed all

costs of production and distribution of the register.

D. For purposes of this section, full text publication in the register includes all new,

amended or added language and such existing language as the proposing agency deems

necessary for a proper understanding of the proposed rule. Rules that are undergoing

extensive revision may be reprinted in whole. Existing rule language not required for

understanding shall be omitted and marked "no change".

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41-1031. Filing rules and preamble with secretary of state; permanent record

A. Following the filing of a rule made pursuant to an exemption to this chapter or

following approval and filing of a rule and preamble and an economic, small business and

consumer impact statement by the council as provided in article 5 of this chapter or by

the attorney general as provided in article 4 of this chapter, the secretary of state shall

affix to each rule document, preamble and economic, small business and consumer

impact statement the time and date of filing. A rule is not final until the secretary of state

affixes the time and date of filing to the rule document as provided in this section.

B. The secretary of state shall keep a permanent record of rules, preambles and

economic, small business and consumer impact statements filed with the office.

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41-1032. Effective date of rules

A. A rule filed pursuant to section 41-1031 becomes effective sixty days after a certified

original and two copies of the rule and preamble are filed in the office of the secretary of

state and the time and date are affixed as provided in section 41-1031, unless the rule

making agency includes in the preamble information that demonstrates that the rule

needs to be effective immediately on filing in the office of the secretary of state and the

time and date are affixed as provided in section 41-1031. A rule may only be effective

immediately for any of the following reasons:

1. To preserve the public peace, health or safety.

2. To avoid a violation of federal law or regulation or state law, if the need for an

immediate effective date is not created due to the agency's delay or inaction.

3. To comply with deadlines in amendments to an agency's governing statute or federal

programs, if the need for an immediate effective date is not created due to the agency's

delay or inaction.

4. To provide a benefit to the public and a penalty is not associated with a violation of

the rule.

5. To adopt a rule that is less stringent than the rule that is currently in effect and that

does not have an impact on the public health, safety, welfare or environment, or that

does not affect the public involvement and public participation process.

B. Notwithstanding subsection A of this section, a rule making agency may specify an

effective date more than sixty days after the filing of the rule in the office of the

secretary of state if the agency determines that good cause exists for and the public

interest will not be harmed by the later date.

C. This section does not affect the validity of an existing rule until the new or amended

rule that is filed with the secretary of state is effective pursuant to this section.

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41-1052. Council review and approval

A. Before filing a final rule subject to this section with the secretary of state, an agency

shall prepare, transmit to the council and the committee and obtain the council's

approval of the rule and its preamble and economic, small business and consumer impact

statement that meets the requirements of section 41-1055. The governor's office of

strategic planning and budgeting shall prepare the economic, small business and

consumer impact statement if the legislature appropriates monies for this purpose.

B. The council shall accept an early review petition of a proposed rule, in whole or in part,

if the proposed rule is alleged to violate any of the criteria prescribed in subsection D of

this section and if the early petition is filed by a person who would be adversely impacted

by the proposed rule. The council may determine whether the proposed rule, in whole or

in part, violates any of the criteria prescribed in subsection D of this section.

C. Within one hundred twenty days of receipt of the rule, preamble and economic, small

business and consumer impact statement, the council shall review and approve or

return, in whole or in part, the rule, preamble or economic, small business and consumer

impact statement. An agency may resubmit a rule, preamble or economic, small

business and consumer impact statement if the council returns the rule, economic, small

business and consumer impact statement or preamble, in whole or in part, to the

agency.

D. The council shall not approve the rule unless:

1. The economic, small business and consumer impact statement contains information

from the state, data and analysis prescribed by this article.

2. The economic, small business and consumer impact statement is generally accurate.

3. The probable benefits of the rule outweigh within this state the probable costs of the

rule and the agency has demonstrated that it has selected the alternative that imposes

the least burden and costs to persons regulated by the rule, including paperwork and

other compliance costs, necessary to achieve the underlying regulatory objective.

4. The rule is written in a manner that is clear, concise and understandable to the general

public.

5. The rule is not illegal, inconsistent with legislative intent or beyond the agency's

statutory authority.

6. The agency adequately addressed, in writing, the comments on the proposed rule and

any supplemental proposals.

7. The rule is not a substantial change, considered as a whole, from the proposed rule

and any supplemental notices.

8. The preamble discloses a reference to any study relevant to the rule that the agency

reviewed and either did or did not rely on in the agency's evaluation of or justification for

the rule.

9. The rule is not more stringent than a corresponding federal law unless there is

statutory authority to exceed the requirements of that federal law.

10. If a rule requires a permit, the permitting requirement complies with section 41-

1037.

E. The council shall verify that a rule with new fees does not violate section 41-1008.

The council shall not approve a rule that contains a fee increase unless two-thirds of the

voting quorum present vote to approve the rule.

F. The council shall verify that a rule with an immediate effective date complies with

section 41-1032. The council shall not approve a rule with an immediate effective date

unless two-thirds of the voting quorum present vote to approve the rule.

G. If the rule relies on scientific principles or methods, including a study disclosed

pursuant to subsection D, paragraph 8 of this section, and a person submits an analysis

to the council questioning whether the rule is based on valid scientific or reliable principles

or methods, the council shall not approve the rule unless the council determines that the

rule is based on valid scientific or reliable principles or methods that are specific and not

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or methods, the council shall not approve the rule unless the council determines that the

rule is based on valid scientific or reliable principles or methods that are specific and not

of a general nature. In making a determination of reliability or validity, the council shall

consider the following factors as applicable to the rule:

(a) The authors of the study, principle or method have subject matter knowledge, skill,

experience, training and expertise.

(b) The study, principle or method is based on sufficient facts or data.

(c) The study is the product of reliable principles and methods.

(d) The study and its conclusions, principles or methods have been tested or subjected

to peer reviewed publications.

(e) The known or potential error rate of the study, principle or method has been

identified along with its basis.

(f) The methodology and approach of the study, principle or method are generally

accepted in the scientific community.

H. The council may require a representative of an agency whose rule is under

examination to attend a council meeting and answer questions. The council may also

communicate to the agency its comments on any rule, preamble or economic, small

business and consumer impact statement and require the agency to respond to its

comments in writing.

I. At any time during the thirty days immediately following receipt of the rule, a person

may submit written comments to the council that are within the scope of subsection D,

E, F or G of this section. The council may permit testimony at a council meeting within

the scope of subsection D, E, F or G of this section.

J. If the agency makes a good faith effort to comply with the requirements prescribed in

this article and has explained in writing the methodology used to produce the economic,

small business and consumer impact statement, the rule may not be invalidated after it is

finalized on the ground that the contents of the economic, small business and consumer

impact statement are insufficient or inaccurate or on the ground that the council

erroneously approved the rule, except as provided by section 41-1056.01.

K. The absence of comments pursuant to subsection D, E, F or G of this section or article

4.1 of this chapter does not prevent the council from acting pursuant to this section.

L. The council shall review and approve or reject a notice of proposed expedited rule

making pursuant to section 41-1027.

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APPENDIX E - FINAL APPROVAL DOCS
APPENDIX E - FINAL APPROVAL DOCS
APPENDIX E - FINAL APPROVAL DOCS
APPENDIX E - FINAL APPROVAL DOCS
APPENDIX E - FINAL APPROVAL DOCS
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49-444. Notice of hearing; publication; service

A. Any notice of hearing required by this chapter shall be given by publication of a notice

of hearing for at least two times in a newspaper of general circulation published in the

county concerned or if there is no such newspaper published in the county, in a

newspaper of general circulation published in an adjoining county.

B. If the hearing involves any violation of rules adopted pursuant to this chapter, or a

conditional order therefrom then, in addition to the requirements of subsection A, the

person allegedly committing or having committed the violation or requesting the

conditional order shall be served pursuant to title 41, chapter 6, article 10.

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APPENDIX F - PUBLIC NOTICE
APPENDIX F - PUBLIC NOTICE
APPENDIX F - PUBLIC NOTICE
APPENDIX G - PUBLIC HEARING
Public Hearing Agenda 

Printed on recycled paper 

AIR QUALITY DIVISION

PUBLIC HEARING ON THE NEW SOURCE REVIEW 

NOTICE OF PROPOSED RULEMAKING 

AND SIP REVISION 

PLEASE NOTE THE MEETING LOCATION AND TIME: 

Arizona Department of Environmental Quality 

Conference Room 250 

1110 W. Washington St. 

Phoenix, AZ 85007 

Pursuant to 40 CFR § 51.102 notice is hereby given that the above referenced meeting is open to the 

public. 

1. Welcome and Introductions 

2. Purposes of the Oral Proceeding 

3. Procedure for Making Public Comment 

4. Brief Overview of the proposed NPRM and SIP Revisions 

5. Question and Answer Period 

6. Oral Comment Period 

7. Adjournment of Oral Proceeding 

Copies of the proposal are available for review at the Arizona Department of Environmental Quality 

(ADEQ) Library, 1110 W. Washington St., Phoenix, Arizona. For additional information regarding the 

hearing please call Steve Burr, ADEQ Air Quality Division, at (602) 771-4251 or toll-free at 1-800-234-

5677, Ext. 771-4251. 

Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by 

contacting Dan Flukas at (602) 771-4795 or 1-800-234-5677, Ext. 771-4795. Requests should be made as 

early as possible to allow sufficient time to make the arrangements for the accommodation. This 

document is available in alternative formats by contacting ADEQ TDD phone number at (602) 771-4829. 

APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
1

1 PROPOSED ARIZONA AIR QUALITY 

2 STATE IMPLEMENTATION PLAN (SIP) 

3 AND NOTICE OF PROPOSED RULEMAKING FOR 

4 NEW SOURCE REVIEW 

5 

6 

7 Oral Proceeding 

8 Transcript 

9 

10 December 8, 2011 

11 

12 Ms. Deborrah “Corky” Martinkovic: Good evening, thank you for coming. I now 

13 open this hearing on the Notice of Proposed Rulemaking for revisions to the state’s 

14 new source review (or NSR) program and the corresponding proposed revisions to 

15 the state implementation plan. 

16 

17 It is now December 8, 2011, and the time is 5:07 p.m. The location is conference 

18 room 250 at the Arizona Department of Environmental Quality, 1110 West 

19 Washington Street, Phoenix, Arizona 85007. My name is Deborrah “Corky” 

20 Martinkovic and I have been appointed by the Director of the Arizona Department 

21 of Environmental Quality (ADEQ) to preside at this meeting. 

22 

23 The purposes of this proceeding are to provide the public an opportunity to: 

24 (1) hear about the substance of the proposed NSR SIP and rule revisions, 

25 (2) ask questions regarding the revisions, and 

26 (3) present oral argument, data and views regarding the revisions in the form of 

27 comments on the record. 

APPENDIX G - PUBLIC HEARING
2

1 

2 Representing the Department are: Air Quality Deputy Director, Trevor Baggiore, 

3 Steve Burr and myself, Deborrah “Corky” Martinkovic. 

4 

5 Public notice of the NPRM appeared in the Arizona Administrative Register on 

6 November 4, 2011. Public notice of the SIP revision was published in the Arizona 

7 Republic. Notice of both documents was also provided by email to members of the 

8 public on our NSR stakeholders list and on the ADEQ website. Paper copies of the 

9 proposed rule and SIP revisions are available at ADEQ’s Phoenix office. 

10 

11 The procedure for making a public comment on the record is straightforward. If 

12 you wish to comment, you need to fill out a speaker slip, which is available at the 

13 sign-in table, and give it to me. Using speaker slips allows everyone the 

14 opportunity to be heard and allows us to match the name on the official record with 

15 the comments. You may also submit written comments to me today. Please note, 

16 the comment period for the proposed rule and SIP revision ends on July 12, excuse 

17 me, January 12, 2012. All written comments must be postmarked if sent via U.S. 

18 mail or received if sent via e-mail at ADEQ by January 12, 2012. Written 

19 comments can be mailed to Steve Burr, Air Quality Planning Section, Arizona 

20 Department of Environmental Quality, 1110 W. Washington Street, Phoenix, 

21 85007 or sb5@azdeq.gov. Comments may also be faxed to (602) 771-2366. 

22 

23 Comments made during the formal comment period are required by law to be 

24 considered by the Department when preparing the notice of final rulemaking and 

25 state implementation plan. This is done through the preparation of a 

26 responsiveness summary and response to comments in the Notice of Final 

APPENDIX G - PUBLIC HEARING
3

1 Rulemaking in which the Department responds in writing to written and oral 

2 comments made during the formal comment period. 

3 

4 The agenda for this hearing is simple. First, we will present a brief overview of the 

5 proposed revision to the state implementation plan and proposed rulemaking. 

6 

7 Second, I will conduct a question and answer period. The purpose of the question 

8 and answer period is to provide information that may help you in making 

9 comments on the proposed revision. 

10 

11 Thirdly, I will conduct the oral comment period. At this time, we will begin to call 

12 speakers in the order that I have received speaker slips. 

13 

14 Please be aware that any comments at today's hearing that you want the 

15 Department to formally consider must be given either in writing or on the record at 

16 today’s hearing during the oral comment period of this proceeding. 

17 

18 At this time, Steve Burr will give a brief overview of the proposal. 

19 

20 * * * * * 

21 

22 Mr. Steve Burr: Good evening. My name is Steve Burr. I’m an Executive 

23 Consultant with the Director’s Office of the Air Quality Division, and I had 

24 primary responsibility for drafting the Notice of Proposed Rulemaking and 

25 proposed SIP revision that are the subjects of this hearing. 

26 

APPENDIX G - PUBLIC HEARING
4

1 The purpose of the NPRM and the SIP revision is to bring the state’s new source 

2 review program into compliance with the federal clean air act so that the state can 

3 obtain, with one exception, full approval of the program from EPA. 

4 

5 The one exception is the federal program for applying prevention of significant 

6 deterioration requirements to greenhouse gases. ADEQ is currently administering 

7 the greenhouse gas program under a delegation agreement with EPA. Since the 

8 current proposed rule and SIP revisions do not address greenhouse gases, the 

9 department will continue to administer that part of the program under delegation 

10 unless and until we conduct a future rulemaking addressing that subject. 

11 

12 The Clean Air Act requires SIPs to include programs for the review of new and 

13 modified major and minor sources. Programs for major sources must meet the 

14 highly detailed and prescriptive requirements of Title I, Parts C and D of the Act. 

15 Part C applies to sources in attainment areas and is commonly referred to as the 

16 prevention of significant deterioration or PSD program. Part D applies to major 

17 sources in nonattainment areas. 

18 

19 Under section 110(a)(2)(C) of the Act, minor sources must be regulated “as 

20 necessary to assure that the national ambient air quality standards [or NAAQS] are 

21 achieved.” 

22 

23 Arizona’s NSR regulations were last approved in the mid 1980’s, when ADEQ 

24 didn’t even exist; the program at that time was administered by the Department of 

25 Health Services. As a result, there is a significant discrepancy, which we refer to as 

26 the SIP gap, between the NSR program approved in the SIP and the NSR rules 

27 currently contained in the Arizona Administrative Code. 

APPENDIX G - PUBLIC HEARING
5

1 

2 That’s obviously an undesirable situation for a number of reasons, but in order to 

3 fix it, ADEQ needs to make sure that its current rules satisfy federal requirements 

4 and can be approved by EPA. That in turn necessitates extensive revisions to our 

5 existing rules. 

6 

7 The rule revisions that we believe to be necessary to secure approval and eliminate 

8 the SIP gap are described and justified in detail in the NPRM. I’ll just provide a 

9 brief summary of some of the highlights: 

10 

11 First, our current requirements for minor NSR do not currently include a program 

12 to assure protection of the NAAQS. We have added such a program in new rule 

13 R18-2-334. We have attempted in that rule to provide sources with a number of 

14 options for satisfying the underlying Clean Air Act requirement. 

15 

16 Second, EPA has long contended that our current emissions thresholds for sources 

17 that require a permit are too high to satisfy the federal requirements for minor 

18 NSR. We are therefore proposing to adopt a new registration program for sources 

19 smaller than those that currently require a permit. This program will serve 

20 primarily as a screening mechanism for identifying smaller sources that may need 

21 to be subject to minor NSR. We anticipate that the overwhelming majority of these 

22 small sources will not. 

23 

24 Finally, since we last amended our rules, EPA has adopted numerous amendments 

25 to its minimum federal requirements for major NSR. The NPRM would update 

26 ADEQ’s rules to incorporate these amendments. In particular, we are adopting 

27 EPA’s “NSR Reform rules,” which provide major sources with additional options 

APPENDIX G - PUBLIC HEARING
6

1 for determining whether changes to existing emissions units are subject to major 

2 NSR.

3 

4 So that’s the NPRM. The SIP document essentially explains why the amended 

5 rules included in the NPRM, plus a few existing rules that do not require revision, 

6 are approvable as replacements for the existing, outdated ADHS rules. We intend 

7 in the next couple of days to submit the draft SIP document to EPA for parallel 

8 processing, so that EPA can begin reviewing these changes while ADEQ finalizes 

9 this rulemaking. 

10 

11 That concludes my presentation. I will now turn the hearing back over to Corky. 

12 

13 Mrs. Martinkovic: This concludes the explanation period of this proceeding on the 

14 proposed revision to the state implementation plan and the proposed rulemaking. 

15 

16 * * * * * 

17 

18 Are there any questions before we move to the oral comment period? 

19 

20 Hearing none, this concludes the question and answer period of this proceeding on 

21 the proposed state implementation plan revision and proposed rulemaking. 

22 

23 * * * * * 

24 

25 I now open this proceeding for oral comments. 

26 

27 I have no speaker slips, so I assume there are no formal comments. 

APPENDIX G - PUBLIC HEARING
7

1 

2 Well, seeing no speaker slips, this concludes the oral comment period of this 

3 proceeding. 

4 

5 * * * * * 

6 

7 If you have not already submitted written comments, you may submit them to me 

8 at this time. Again, the comment period for this proposed revision to the state 

9 implementation plan and proposed rulemaking ends January 12, 2012. 

10 

11 Thank you for attending. The time is now 5:15. I now close this oral proceeding. 

12 

13 

14 

15 

16 

17 

18 

19 

APPENDIX G - PUBLIC HEARING
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49-444. Notice of hearing; publication; service

A. Any notice of hearing required by this chapter shall be given by publication of a notice

of hearing for at least two times in a newspaper of general circulation published in the

county concerned or if there is no such newspaper published in the county, in a

newspaper of general circulation published in an adjoining county.

B. If the hearing involves any violation of rules adopted pursuant to this chapter, or a

conditional order therefrom then, in addition to the requirements of subsection A, the

person allegedly committing or having committed the violation or requesting the

conditional order shall be served pursuant to title 41, chapter 6, article 10.

 ©2007 Arizona State Legislature. privacy statment 

Senate House Legislative Council JLBC More Agencies Bills Committees Calendars/News

APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
1

1 PROPOSED ARIZONA AIR QUALITY 

2 STATE IMPLEMENTATION PLAN (SIP) 

3 AND NOTICE OF PROPOSED RULEMAKING FOR 

4 NEW SOURCE REVIEW 

5 

6 

7 Oral Proceeding 

8 Transcript 

9 

10 December 8, 2011 

11 

12 Ms. Deborrah “Corky” Martinkovic: Good evening, thank you for coming. I now 

13 open this hearing on the Notice of Proposed Rulemaking for revisions to the state’s 

14 new source review (or NSR) program and the corresponding proposed revisions to 

15 the state implementation plan. 

16 

17 It is now December 8, 2011, and the time is 5:07 p.m. The location is conference 

18 room 250 at the Arizona Department of Environmental Quality, 1110 West 

19 Washington Street, Phoenix, Arizona 85007. My name is Deborrah “Corky” 

20 Martinkovic and I have been appointed by the Director of the Arizona Department 

21 of Environmental Quality (ADEQ) to preside at this meeting. 

22 

23 The purposes of this proceeding are to provide the public an opportunity to: 

24 (1) hear about the substance of the proposed NSR SIP and rule revisions, 

25 (2) ask questions regarding the revisions, and 

26 (3) present oral argument, data and views regarding the revisions in the form of 

27 comments on the record. 

APPENDIX G - PUBLIC HEARING
2

1 

2 Representing the Department are: Air Quality Deputy Director, Trevor Baggiore, 

3 Steve Burr and myself, Deborrah “Corky” Martinkovic. 

4 

5 Public notice of the NPRM appeared in the Arizona Administrative Register on 

6 November 4, 2011. Public notice of the SIP revision was published in the Arizona 

7 Republic. Notice of both documents was also provided by email to members of the 

8 public on our NSR stakeholders list and on the ADEQ website. Paper copies of the 

9 proposed rule and SIP revisions are available at ADEQ’s Phoenix office. 

10 

11 The procedure for making a public comment on the record is straightforward. If 

12 you wish to comment, you need to fill out a speaker slip, which is available at the 

13 sign-in table, and give it to me. Using speaker slips allows everyone the 

14 opportunity to be heard and allows us to match the name on the official record with 

15 the comments. You may also submit written comments to me today. Please note, 

16 the comment period for the proposed rule and SIP revision ends on July 12, excuse 

17 me, January 12, 2012. All written comments must be postmarked if sent via U.S. 

18 mail or received if sent via e-mail at ADEQ by January 12, 2012. Written 

19 comments can be mailed to Steve Burr, Air Quality Planning Section, Arizona 

20 Department of Environmental Quality, 1110 W. Washington Street, Phoenix, 

21 85007 or sb5@azdeq.gov. Comments may also be faxed to (602) 771-2366. 

22 

23 Comments made during the formal comment period are required by law to be 

24 considered by the Department when preparing the notice of final rulemaking and 

25 state implementation plan. This is done through the preparation of a 

26 responsiveness summary and response to comments in the Notice of Final 

APPENDIX G - PUBLIC HEARING
3

1 Rulemaking in which the Department responds in writing to written and oral 

2 comments made during the formal comment period. 

3 

4 The agenda for this hearing is simple. First, we will present a brief overview of the 

5 proposed revision to the state implementation plan and proposed rulemaking. 

6 

7 Second, I will conduct a question and answer period. The purpose of the question 

8 and answer period is to provide information that may help you in making 

9 comments on the proposed revision. 

10 

11 Thirdly, I will conduct the oral comment period. At this time, we will begin to call 

12 speakers in the order that I have received speaker slips. 

13 

14 Please be aware that any comments at today's hearing that you want the 

15 Department to formally consider must be given either in writing or on the record at 

16 today’s hearing during the oral comment period of this proceeding. 

17 

18 At this time, Steve Burr will give a brief overview of the proposal. 

19 

20 * * * * * 

21 

22 Mr. Steve Burr: Good evening. My name is Steve Burr. I’m an Executive 

23 Consultant with the Director’s Office of the Air Quality Division, and I had 

24 primary responsibility for drafting the Notice of Proposed Rulemaking and 

25 proposed SIP revision that are the subjects of this hearing. 

26 

APPENDIX G - PUBLIC HEARING
4

1 The purpose of the NPRM and the SIP revision is to bring the state’s new source 

2 review program into compliance with the federal clean air act so that the state can 

3 obtain, with one exception, full approval of the program from EPA. 

4 

5 The one exception is the federal program for applying prevention of significant 

6 deterioration requirements to greenhouse gases. ADEQ is currently administering 

7 the greenhouse gas program under a delegation agreement with EPA. Since the 

8 current proposed rule and SIP revisions do not address greenhouse gases, the 

9 department will continue to administer that part of the program under delegation 

10 unless and until we conduct a future rulemaking addressing that subject. 

11 

12 The Clean Air Act requires SIPs to include programs for the review of new and 

13 modified major and minor sources. Programs for major sources must meet the 

14 highly detailed and prescriptive requirements of Title I, Parts C and D of the Act. 

15 Part C applies to sources in attainment areas and is commonly referred to as the 

16 prevention of significant deterioration or PSD program. Part D applies to major 

17 sources in nonattainment areas. 

18 

19 Under section 110(a)(2)(C) of the Act, minor sources must be regulated “as 

20 necessary to assure that the national ambient air quality standards [or NAAQS] are 

21 achieved.” 

22 

23 Arizona’s NSR regulations were last approved in the mid 1980’s, when ADEQ 

24 didn’t even exist; the program at that time was administered by the Department of 

25 Health Services. As a result, there is a significant discrepancy, which we refer to as 

26 the SIP gap, between the NSR program approved in the SIP and the NSR rules 

27 currently contained in the Arizona Administrative Code. 

APPENDIX G - PUBLIC HEARING
5

1 

2 That’s obviously an undesirable situation for a number of reasons, but in order to 

3 fix it, ADEQ needs to make sure that its current rules satisfy federal requirements 

4 and can be approved by EPA. That in turn necessitates extensive revisions to our 

5 existing rules. 

6 

7 The rule revisions that we believe to be necessary to secure approval and eliminate 

8 the SIP gap are described and justified in detail in the NPRM. I’ll just provide a 

9 brief summary of some of the highlights: 

10 

11 First, our current requirements for minor NSR do not currently include a program 

12 to assure protection of the NAAQS. We have added such a program in new rule 

13 R18-2-334. We have attempted in that rule to provide sources with a number of 

14 options for satisfying the underlying Clean Air Act requirement. 

15 

16 Second, EPA has long contended that our current emissions thresholds for sources 

17 that require a permit are too high to satisfy the federal requirements for minor 

18 NSR. We are therefore proposing to adopt a new registration program for sources 

19 smaller than those that currently require a permit. This program will serve 

20 primarily as a screening mechanism for identifying smaller sources that may need 

21 to be subject to minor NSR. We anticipate that the overwhelming majority of these 

22 small sources will not. 

23 

24 Finally, since we last amended our rules, EPA has adopted numerous amendments 

25 to its minimum federal requirements for major NSR. The NPRM would update 

26 ADEQ’s rules to incorporate these amendments. In particular, we are adopting 

27 EPA’s “NSR Reform rules,” which provide major sources with additional options 

APPENDIX G - PUBLIC HEARING
6

1 for determining whether changes to existing emissions units are subject to major 

2 NSR.

3 

4 So that’s the NPRM. The SIP document essentially explains why the amended 

5 rules included in the NPRM, plus a few existing rules that do not require revision, 

6 are approvable as replacements for the existing, outdated ADHS rules. We intend 

7 in the next couple of days to submit the draft SIP document to EPA for parallel 

8 processing, so that EPA can begin reviewing these changes while ADEQ finalizes 

9 this rulemaking. 

10 

11 That concludes my presentation. I will now turn the hearing back over to Corky. 

12 

13 Mrs. Martinkovic: This concludes the explanation period of this proceeding on the 

14 proposed revision to the state implementation plan and the proposed rulemaking. 

15 

16 * * * * * 

17 

18 Are there any questions before we move to the oral comment period? 

19 

20 Hearing none, this concludes the question and answer period of this proceeding on 

21 the proposed state implementation plan revision and proposed rulemaking. 

22 

23 * * * * * 

24 

25 I now open this proceeding for oral comments. 

26 

27 I have no speaker slips, so I assume there are no formal comments. 

APPENDIX G - PUBLIC HEARING
7

1 

2 Well, seeing no speaker slips, this concludes the oral comment period of this 

3 proceeding. 

4 

5 * * * * * 

6 

7 If you have not already submitted written comments, you may submit them to me 

8 at this time. Again, the comment period for this proposed revision to the state 

9 implementation plan and proposed rulemaking ends January 12, 2012. 

10 

11 Thank you for attending. The time is now 5:15. I now close this oral proceeding. 

12 

13 

14 

15 

16 

17 

18 

19 

APPENDIX G - PUBLIC HEARING
Public Hearing Agenda 

Printed on recycled paper 

AIR QUALITY DIVISION

PUBLIC HEARING ON THE NEW SOURCE REVIEW 

NOTICE OF PROPOSED RULEMAKING 

AND SIP REVISION 

PLEASE NOTE THE MEETING LOCATION AND TIME: 

Arizona Department of Environmental Quality 

Conference Room 250 

1110 W. Washington St. 

Phoenix, AZ 85007 

Pursuant to 40 CFR § 51.102 notice is hereby given that the above referenced meeting is open to the 

public. 

1. Welcome and Introductions 

2. Purposes of the Oral Proceeding 

3. Procedure for Making Public Comment 

4. Brief Overview of the proposed NPRM and SIP Revisions 

5. Question and Answer Period 

6. Oral Comment Period 

7. Adjournment of Oral Proceeding 

Copies of the proposal are available for review at the Arizona Department of Environmental Quality 

(ADEQ) Library, 1110 W. Washington St., Phoenix, Arizona. For additional information regarding the 

hearing please call Steve Burr, ADEQ Air Quality Division, at (602) 771-4251 or toll-free at 1-800-234-

5677, Ext. 771-4251. 

Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by 

contacting Dan Flukas at (602) 771-4795 or 1-800-234-5677, Ext. 771-4795. Requests should be made as 

early as possible to allow sufficient time to make the arrangements for the accommodation. This 

document is available in alternative formats by contacting ADEQ TDD phone number at (602) 771-4829. 

APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
APPENDIX G - PUBLIC HEARING
1

1 PROPOSED ARIZONA AIR QUALITY 

2 STATE IMPLEMENTATION PLAN (SIP) 

3 AND NOTICE OF PROPOSED RULEMAKING FOR 

4 NEW SOURCE REVIEW 

5 

6 

7 Oral Proceeding 

8 Transcript 

9 

10 December 8, 2011 

11 

12 Ms. Deborrah “Corky” Martinkovic: Good evening, thank you for coming. I now 

13 open this hearing on the Notice of Proposed Rulemaking for revisions to the state’s 

14 new source review (or NSR) program and the corresponding proposed revisions to 

15 the state implementation plan. 

16 

17 It is now December 8, 2011, and the time is 5:07 p.m. The location is conference 

18 room 250 at the Arizona Department of Environmental Quality, 1110 West 

19 Washington Street, Phoenix, Arizona 85007. My name is Deborrah “Corky” 

20 Martinkovic and I have been appointed by the Director of the Arizona Department 

21 of Environmental Quality (ADEQ) to preside at this meeting. 

22 

23 The purposes of this proceeding are to provide the public an opportunity to: 

24 (1) hear about the substance of the proposed NSR SIP and rule revisions, 

25 (2) ask questions regarding the revisions, and 

26 (3) present oral argument, data and views regarding the revisions in the form of 

27 comments on the record. 

APPENDIX G - PUBLIC HEARING
2

1 

2 Representing the Department are: Air Quality Deputy Director, Trevor Baggiore, 

3 Steve Burr and myself, Deborrah “Corky” Martinkovic. 

4 

5 Public notice of the NPRM appeared in the Arizona Administrative Register on 

6 November 4, 2011. Public notice of the SIP revision was published in the Arizona 

7 Republic. Notice of both documents was also provided by email to members of the 

8 public on our NSR stakeholders list and on the ADEQ website. Paper copies of the 

9 proposed rule and SIP revisions are available at ADEQ’s Phoenix office. 

10 

11 The procedure for making a public comment on the record is straightforward. If 

12 you wish to comment, you need to fill out a speaker slip, which is available at the 

13 sign-in table, and give it to me. Using speaker slips allows everyone the 

14 opportunity to be heard and allows us to match the name on the official record with 

15 the comments. You may also submit written comments to me today. Please note, 

16 the comment period for the proposed rule and SIP revision ends on July 12, excuse 

17 me, January 12, 2012. All written comments must be postmarked if sent via U.S. 

18 mail or received if sent via e-mail at ADEQ by January 12, 2012. Written 

19 comments can be mailed to Steve Burr, Air Quality Planning Section, Arizona 

20 Department of Environmental Quality, 1110 W. Washington Street, Phoenix, 

21 85007 or sb5@azdeq.gov. Comments may also be faxed to (602) 771-2366. 

22 

23 Comments made during the formal comment period are required by law to be 

24 considered by the Department when preparing the notice of final rulemaking and 

25 state implementation plan. This is done through the preparation of a 

26 responsiveness summary and response to comments in the Notice of Final 

APPENDIX G - PUBLIC HEARING
3

1 Rulemaking in which the Department responds in writing to written and oral 

2 comments made during the formal comment period. 

3 

4 The agenda for this hearing is simple. First, we will present a brief overview of the 

5 proposed revision to the state implementation plan and proposed rulemaking. 

6 

7 Second, I will conduct a question and answer period. The purpose of the question 

8 and answer period is to provide information that may help you in making 

9 comments on the proposed revision. 

10 

11 Thirdly, I will conduct the oral comment period. At this time, we will begin to call 

12 speakers in the order that I have received speaker slips. 

13 

14 Please be aware that any comments at today's hearing that you want the 

15 Department to formally consider must be given either in writing or on the record at 

16 today’s hearing during the oral comment period of this proceeding. 

17 

18 At this time, Steve Burr will give a brief overview of the proposal. 

19 

20 * * * * * 

21 

22 Mr. Steve Burr: Good evening. My name is Steve Burr. I’m an Executive 

23 Consultant with the Director’s Office of the Air Quality Division, and I had 

24 primary responsibility for drafting the Notice of Proposed Rulemaking and 

25 proposed SIP revision that are the subjects of this hearing. 

26 

APPENDIX G - PUBLIC HEARING
4

1 The purpose of the NPRM and the SIP revision is to bring the state’s new source 

2 review program into compliance with the federal clean air act so that the state can 

3 obtain, with one exception, full approval of the program from EPA. 

4 

5 The one exception is the federal program for applying prevention of significant 

6 deterioration requirements to greenhouse gases. ADEQ is currently administering 

7 the greenhouse gas program under a delegation agreement with EPA. Since the 

8 current proposed rule and SIP revisions do not address greenhouse gases, the 

9 department will continue to administer that part of the program under delegation 

10 unless and until we conduct a future rulemaking addressing that subject. 

11 

12 The Clean Air Act requires SIPs to include programs for the review of new and 

13 modified major and minor sources. Programs for major sources must meet the 

14 highly detailed and prescriptive requirements of Title I, Parts C and D of the Act. 

15 Part C applies to sources in attainment areas and is commonly referred to as the 

16 prevention of significant deterioration or PSD program. Part D applies to major 

17 sources in nonattainment areas. 

18 

19 Under section 110(a)(2)(C) of the Act, minor sources must be regulated “as 

20 necessary to assure that the national ambient air quality standards [or NAAQS] are 

21 achieved.” 

22 

23 Arizona’s NSR regulations were last approved in the mid 1980’s, when ADEQ 

24 didn’t even exist; the program at that time was administered by the Department of 

25 Health Services. As a result, there is a significant discrepancy, which we refer to as 

26 the SIP gap, between the NSR program approved in the SIP and the NSR rules 

27 currently contained in the Arizona Administrative Code. 

APPENDIX G - PUBLIC HEARING
5

1 

2 That’s obviously an undesirable situation for a number of reasons, but in order to 

3 fix it, ADEQ needs to make sure that its current rules satisfy federal requirements 

4 and can be approved by EPA. That in turn necessitates extensive revisions to our 

5 existing rules. 

6 

7 The rule revisions that we believe to be necessary to secure approval and eliminate 

8 the SIP gap are described and justified in detail in the NPRM. I’ll just provide a 

9 brief summary of some of the highlights: 

10 

11 First, our current requirements for minor NSR do not currently include a program 

12 to assure protection of the NAAQS. We have added such a program in new rule 

13 R18-2-334. We have attempted in that rule to provide sources with a number of 

14 options for satisfying the underlying Clean Air Act requirement. 

15 

16 Second, EPA has long contended that our current emissions thresholds for sources 

17 that require a permit are too high to satisfy the federal requirements for minor 

18 NSR. We are therefore proposing to adopt a new registration program for sources 

19 smaller than those that currently require a permit. This program will serve 

20 primarily as a screening mechanism for identifying smaller sources that may need 

21 to be subject to minor NSR. We anticipate that the overwhelming majority of these 

22 small sources will not. 

23 

24 Finally, since we last amended our rules, EPA has adopted numerous amendments 

25 to its minimum federal requirements for major NSR. The NPRM would update 

26 ADEQ’s rules to incorporate these amendments. In particular, we are adopting 

27 EPA’s “NSR Reform rules,” which provide major sources with additional options 

APPENDIX G - PUBLIC HEARING
6

1 for determining whether changes to existing emissions units are subject to major 

2 NSR.

3 

4 So that’s the NPRM. The SIP document essentially explains why the amended 

5 rules included in the NPRM, plus a few existing rules that do not require revision, 

6 are approvable as replacements for the existing, outdated ADHS rules. We intend 

7 in the next couple of days to submit the draft SIP document to EPA for parallel 

8 processing, so that EPA can begin reviewing these changes while ADEQ finalizes 

9 this rulemaking. 

10 

11 That concludes my presentation. I will now turn the hearing back over to Corky. 

12 

13 Mrs. Martinkovic: This concludes the explanation period of this proceeding on the 

14 proposed revision to the state implementation plan and the proposed rulemaking. 

15 

16 * * * * * 

17 

18 Are there any questions before we move to the oral comment period? 

19 

20 Hearing none, this concludes the question and answer period of this proceeding on 

21 the proposed state implementation plan revision and proposed rulemaking. 

22 

23 * * * * * 

24 

25 I now open this proceeding for oral comments. 

26 

27 I have no speaker slips, so I assume there are no formal comments. 

APPENDIX G - PUBLIC HEARING
7

1 

2 Well, seeing no speaker slips, this concludes the oral comment period of this 

3 proceeding. 

4 

5 * * * * * 

6 

7 If you have not already submitted written comments, you may submit them to me 

8 at this time. Again, the comment period for this proposed revision to the state 

9 implementation plan and proposed rulemaking ends January 12, 2012. 

10 

11 Thank you for attending. The time is now 5:15. I now close this oral proceeding. 

12 

13 

14 

15 

16 

17 

18 

19 

APPENDIX G - PUBLIC HEARING
EPA Comments on ADEQ NSR Program submittal: 

1. Registrations: Rules R18-2-302 and R18-2-302.01 use the phrase “emits or has the potential 

to emit, without controls, other than elective limits or controls that have been or will be 

adopted under R18-2-301.01(F)”. It is our interpretation that ADEQ intends to determine 

registration and Class II applicability based on uncontrolled PTE. Except that sources that 

want to avoid Class II permits may adopt limits on PTE under 302.01(F) and only have to 

obtain registrations. The language as written in the rules is a bit confusing. We recommend 

including a definition for “uncontrolled PTE” or “PTE uncontrolled” and include in the 

definition, as an example, “except for elective limits on the potential to emit adopted under 

Rule R18-2-301.01(F) to qualify as a registration”. Rule R18-2-302.B.2.iii could then be 

rewritten to state: “any stationary source that emits or has an uncontrolled potential to emit 

significant quantities of regulated NSR pollutants”. 

2. The rules must provide provisions to assure, pursuant to Section 173(c)(1), that any emissions offsets 

obtained in conjunction with the issuance of a permit to a new or modified source must be 

enforceable by the time of issuance of the permit, and in effect by the time the new or modified 

source commences operation. We could not find a reference requiring the offset to be “in 

effect” by the time commences operation. 

3. The rules must provide provisions to assure that emissions increases from new or modified major 

stationary sources are offset by real reductions in actual emissions as required by Section 173(c)(1). 

Please make sure the rules state more explicitly that the reductions must be real.

4. The rules must provide a definition of "stationary source" that requires certain internal combustion 

engines to be subject to control under State programs, but which excludes the category of "nonroad 

engines." See CAA Section 302(z) This is typically accomplished by specifically excluding nonroad 

engines from the definition of stationary source and adding a definition for nonroard engines or a 

cross reference to EPA’s definition of such engines; or by explicitly exempting such engines from 

permit requirements. Please make a revision to ensure compliance with this CAA requirement. 

5. The rules must provide provisions, pursuant to 40 CFR 51.165(a)(1)(iv)(C), which require that 

fugitive emissions be included in the major source applicability determination if the source belongs to 

one of the source categories listed in this section. Otherwise, fugitives may be excluded from the 

applicability determination for new major sources and major modifications. (Current rule 

status given stay see 76 FR 17548 3/30/11) In R18-2-403.E, it appears fugitives are only 

excluded from applicability for non-28 source category if consideration of fugitives alone 

makes the source major. Would prefer that the rules state explicitly under the definition for 

major source that fugitives are required in the determination for whether the source is major. 

6. The rules must provide provisions, pursuant to 40 CFR 51.165(a)(5)(i), which ensure a source is not 

relieved of responsibility to comply with applicable provisions of the plan, and another other 

requirements under local, State or Federal law. While we found this provision in R18-2-406.G for 

PSD, we could not find it for NNSR or minor NSR. 

7. The rules must provide provisions, pursuant to 40 CFR 51.165(a)(9), which requires the proper offset 

ratios be required, based on an areas nonattainment classification. It appears in XXX, that offsets are 

only required at 1:1 for moderate ozone nonattainment instead of 1.15:1.

8. The rules must provide provisions, pursuant to 40 CFR 51.165(a)(11), regarding the use of 

interpollutant offsets, if the rule allows the use of interpollutant offsets. We could not find such 

provisions, but it appears that the rule does not allow the use of such interpollutant offsets. Please 

confirm.

9. R18-2-402.G.3 requires visibility requirements to be met in R18-2-410, but there is no 410. 

10. R18-2-302.01.C –302.01.C.2 has “may” review for some sources. Language needs to be more 

APPENDIX H - PUBLIC COMMENTS
absolute.

11. The rules must provide provisions, pursuant to 51.161(d), that require a copy of the notice required 

by paragraph (b) of this section also be sent to the EPA, and to all other State and local air pollution 

control agencies having jurisdiction in the region in which such new or modified installation 

will be located. For lead, a copy of the notice is required for all point sources. The definition 

of point source for lead is given in 40 CFR 51.100(k)(2). 

R18-2-304.I.2.g - For Class II permit that contains voluntary emission limitations, controls, 

or other requirements established pursuant to R18-2-306.01, the Director shall have complied 

with the requirement of R18-2-306.01(C) to provide the Administrator with a copy of the 

proposed permit. However, there is no 306.01. In addition, no requirements for registrations 

were found. 

12. We could not find provisions in the rule regarding the use of good engineering practice for 

stack heights as required by 40 CFR 51.164. 

13. Definitions 

a. Potential to emit – Recommend maintaining the “federally enforceable” language. 

Otherwise the definition needs to be revised to “legally and practically enforceable” and a 

definition for “legally and practically enforceable” should be added. 

b. Minor NSR Modification – the baseline for determining increases under this definition is 

not clear. For minor NSR modifications at major sources the applicability test could be 

the same as the test used for major NSR, since the source will already have to determine 

if major NSR applies (actual-to-potential). For minor NSR modifications at minor 

sources an allowable to allowable test could be used. 

c. Actual emissions – this definition allows Class II sources to use “applicable control 

equipment requirements and projected conditions of operation” for emissions units that 

have not begun operation. These are not defined terms and it is not clear what is meant. 

We recommend the same definition used for Class I permits of “potential to emit” be 

used for all permits and registration. 

d. Begin actual construction – references to “title I, parts C and D and section 112 of the 

Act” may be more helpful if Rule R18-2-210 – Attainment, Nonattainment, and 

Unclassifiable Area Designations – were identified instead. Reading Section 112 of the 

Act will not provide the designations for Arizona to the reader, or where to find them. 

This reference appears in other places as well. 

e. Categorically exempt activities – the cumulative horsepower rating for emergencies 

engines appear quite high. A basis for this determination is needed. 

f. Federal applicable requirement – definition contains the phrase “as they apply to 

emissions units covered by Class I or II permits. We note that Registrations may also 

have federally applicable requirements; however, this statement seems unnecessary. 

Federal applicable requirements apply regardless of whether the source obtains a permit 

or registration. 

g. Federally enforceable – has a reference to R18-2-306.01. This rule could not be found. 

h. Hazardous air pollutant – this definition should state where the federally listed HAPs can 

be found 

i. Stationary source – contains a definition for building, structure, facility, and installation. 

This definition should be separate. 

APPENDIX H - PUBLIC COMMENTS
ARIZONA MINING ASSOCIATION 

916 W. Adams, Suite 2 

Phoenix, AZ 85007 

(602} 266-4416; FAX (602} 357-3381 

January 4, 2012, 

Mr. Steven J. Burr 

Arizona Department of Environmental Quality 

1110 W. Washington Street 

Phoenix, AZ 85007 

Robert E. Quick Jr., President 

Re: Comments on ADEQ Proposed NSR Rule Revisions 

Dear Mr. Burr: 

The Arizona Mining Association (AMA) appreciates the opportunity to submit these 

comments on the proposed New Source Review (NSR) rule revisions prepared by the Arizona 

Department of Environmental Quality (ADEQ) and published in the Arizona Administrative 

Register on November 4, 2011. AMA member companies own and operate facilities that are or 

could be subject to the State's major and minor NSR rules. 

In general, AMA supports ADEQ's proposals to address the discrepancies between 

Arizona's NSR rules and those currently approved as part of the State Implementation Plan 

(SIP); to incorporate the federal NSR Reform rules as part of Arizona's NSR rules; and to 

address deficiencies identified by U.S. Environmental Protection Agency (EPA) Region IX in 

ADEQ's minor NSR program. 

AMA also recognizes ADEQ's efforts to work with stakeholders on clarifying, 

simplifying, and streamlining the NSR rules where possible. To assist in that effort, AMA 

provided additional comments and suggestions on April 13, 2010, which were discussed during 

the last stakeholder meeting held on April 27, 2010. Although ADEQ indicated that it was 

amenable to addressing several of AMA's proposals and issues at that meeting, the October 28, 

2010 and July 19, 2011 pre-publication draft NSR rule revisions did not address them. AMA 

submitted additional comments on October 21, 2011 and requested that ADEQ provide 

clarification on the status of AMA's prior comments (as well as those of member companies) 

and whether remaining issues would be addressed prior to publication of the proposed rule 

reVISIOnS. 

While AMA remains committed to working with ADEQ to address the issues and 

proposals previously identified, AMA does not want to subject the current rulemaking to further 

delay. Accordingly, the following comments supersede AMA's prior comments and are limited 

to items that warrant correction or clarification prior to final promulgation of the NSR rule 

revisions. 

Page 1 of8 

APPENDIX H - PUBLIC COMMENTS
R18-2-101 Definitions 

Begin actual construction. ADEQ notes that EPA Region IX has objected to the 

inclusion of the clause at subsection (a)(iii), which excludes "[i]nstallation of ancillary structures, 

including fences, office buildings and temporary storage structures, that are not a necessary 

component of an emissions unit or associated air pollution control equipment for which the 

permit is required" from the definition for purposes of Title I, Parts C and D and section 112 of 

the Act. Although EPA Region IX' s specific concerns are unclear, AMA understands the clause 

at issue to be consistent with EPA's longstanding policy that "begin actual construction" 

includes only construction on an emissions unit and "any installations necessary to accommodate 

that unit." See e.g., EPA memorandum entitled "Construction Activities Prior to Issuance of a 

PSD Permit with Respect to Begin Actual Construction" from Edward E. Reich, Director, EPA 

Stationary Source Compliance Division, dated March 28, 1986. Construction of "optional" 

structures that are not an "integral part of the PSD source or modification" is not prohibited 

under the definition. See EPA memorandum entitled "Source Construction Prior to Issuance of a 

PSD Permit" from Thomas W. Devine, Chief Air Branch, Region I, dated October 10, 1978); 

EPA Letter from JohnS. Seitz, Director of Air Quality Planning and Standards, to Charles W. 

Williams, Commissioner, Minnesota Pollution Control Agency, dated December 13, 1995. 

AMA requests clarification on EPA Region IX' s specific concerns and proposes to work with 

ADEQ to address those concerns. 

Categorically exempt activities. It is not clear why only "boilers" up to 10 mmbtu/hr are 

categorically exempt and not all natural-gas fired equipment. At the very least, the provision 

should be revised to read "Any combination of natural gas fired equipment with a cumulative 

maximum design heat input capacity of less than 10 million Btu/hr." Similar provisions exist in 

many state codes and should not present an approvability issue. 

Federally enforceable. In the context of defining those limitations and conditions that 

are enforceable by EPA and those that are enforceable only by the state, AMA requests that 

ADEQ clarify that the registration portion of the NSR program (not just permitting) is included 

in subsection (b) and add "R18-2-306.02" to subsection (d) as additional authority for voluntarily 

established permit conditions that become enforceable. 

As used for other purposes, the term "federally enforceable" does not appear relevant in 

light of the National Mining Association and Chemical Manufacturer's Association cases that 

explicitly rejected the "federally enforceable" concept for purposes of calculating potential to 

emit. While ADEQ has replaced the term with the broader "enforceable as a practical matter" 

under the R18-2-101 definitions of "net emissions increase" and "potential to emit," the term 

"federally enforceable" still appears throughout the NSR rules (e.g., the R18-2-101 definitions of 

"allowable emissions," "major modification," "modification," and "Minor NSR Modification"; 

the R18-2-304 permit application processing provisions at E.9; the R18-2-317 facility change 

without permit revision provision at A.S; the R18-2-319 minor permit revision provision at 

A.4.a; and the R18-2-404 Offsets provisions at D and F). As the definition of "federally 

enforceable" is currently proposed, it would have unintended consequences for the other NSR 

rule provisions that reference that term. For example, the R18-2-101 definition of "allowable 

emissions" would exclude "the condition of any permit designated as being enforceable only by 

the state" and restrictions "designated as enforceable only by the state that are included in a 

Page 2 of8 

APPENDIX H - PUBLIC COMMENTS
permit pursuant to R18-2-306.01" from consideration in the allowable emission rate calculation. 

AMA requests that ADEQ revise the "federally enforceable" references in the NSR rules (e.g., 

using the broader "enforceable as a practical matter" language) as necessary to address these 

unintended consequences. 

Federally listed hazardous air pollutant. It is unclear why the state provision at "R18-2-

1701(9)" is referenced rather than the federal provision at Clean Air Act§ 112(b)(1), 42 U.S.C. § 

7412(b)(1). 

Insignificant activity. AMA recommends that ADEQ re-evaluate whether all of the 

detailed information that this definition requires is really necessary. For example, it is unclear 

why piping, which is designed not to release material, needs to be listed unless subject to an 

NSPS leak detection and repair requirement. Similarly, listing each and every container is 

burdensome and does not add much to the permit writer's understanding of the facility. 

Major modification. The definition of "major modification" leaves out the following 

language: "The source or modification would be a major stationary source or major modification 

only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential to 

emit of the stationary source or modification and such source does not belong to a" 302(j) 

category. This language is found at 40 C.P.R. § 52.166(i)(ii) and is not subject to the stay. See 

76 Fed. Reg. 17548 (Mar. 30, 2011). While this may seem inconsistent with the stayed 

provisions, it allows a source opting to use the "potential to emit" test to continue to exclude 

fugitives, while sources using the "projected actual emissions" test might have to include them 

under the stay. 

PermiUing authority. The definition should also include an "air pollution control 

district" as authorized by A.R.S. § 49-473.B. 

Regulated NSR pollutant. ADEQ notes that EPA Region IX has objected to the 

language explaining that NOx is presumed to be a precursor for PM2.s unless the director 

demonstrates to the administrator's satisfaction or the administrator demonstrates that NOx 

emissions from sources in a specific area are not a significant contributor to that area's ambient 

PM2.s concentrations. Presumably, EPA Region IX's concerns were the basis for the removal of 

the similar clarifying language regarding the rebuttable presumption that VOCs are presumed not 

to be precursors to PM2.S· Because this language was taken verbatim from EPA's federal rules 

(i.e., 40 C.P.R. § 51.166(b)(49) and 40 C.P.R. § 52.21(b)(50)), EPA Region IX's objection is 

unclear. Although EPA Region IX indicates that if ADEQ is able to make the required 

demonstration in the future, it may amend the rule to exclude NOx from being considered a 

PM2.s precursor in the appropriate areas, this would add an additional ADEQ rulemaking hurdle 

(and presumably, an EPA SIP-approval process) before NOx could be excluded as a precursor 

for PM2.s· Accordingly, AMA requests that ADEQ replace the former language addressing the 

rebuttable presumptions on precursor status for both NOx and VOCs, which is consistent with 

the federal rules. 

SCREEN model. Because the air dispersion model used for screening purposes may 

vary, AMA recommends that ADEQ provide a generic definition for "screen model" rather than 

specific reference to AERSCREEN. Otherwise, rulemaking would be required to use a different 

Page 3 of8 

APPENDIX H - PUBLIC COMMENTS
screening model (e.g., an updated EPA model) where other parts of the NSR rules specify the 

term "SCREEN model." 

R18-2-301 Definitions 

Minor NSR Modification. AMA requests that ADEQ add "RlS-2-306.02" as additional 

authority for emission caps under subsection ( d)(ii). 

Synthetic minor. AMA requests that ADEQ add "RlS-2-306.02" as additional authority 

for restrictions to reduce potential to emit to a level below the major source threshold. AMA is 

also concerned that this definition implies that only "voluntarily accepted emission limits" under 

RlS-2-306.01 (or RlS-2-306.02) may be used to reduce the potential to emit. In fact, any 

preconstruction permit condition or registration control elected under R18-2-304(F) should also 

be sufficient to establish synthetic minor status. 

R18-2-302 Applicability; Registration; Classes of Permits 

Presumably, ADEQ replaced "modification" in R18-2-302(B)(2)(b) with "make a 

physical or operational change" to address the difference between the newly incorporated 

statutory definition of "modification" (which requires that an emissions increase at a minor 

source be determined by comparing the source's potential to emit before and after the 

modification) and the intended Class II permit applicability determination for existing 

unpermitted, unregistered, or registered sources (which would require an evaluation of potential 

to emit without controls other than elective limits that have or would be adopted under R18-2-

302.01(F)). By replacing this language, however, ADEQ has removed the types of changes that 

are not considered a physical change or change in the method of operation. AMA requests that 

ADEQ add these exclusions to the revised language in R18-2-302(B)(2)(b) or replace the former 

language to be consistent with the statutory definition of"modification." 

AMA also suggests that ADEQ replace "administrator approves" with "effective date of 

the Administrator's approval of' in R18-2-306(B)(4) to be consistent with the language in R18-

2-306(B)(3). 

R18-2-302.01 Source Registration Requirements 

AMA requests that ADEQ revise the registration revlSlon trigger in R18-2-

302.0l(G)(l)(a) as necessary to conform with the revisions to R18-2-302(B)(2)(b) requested 

above. 

Consistent with the comment regarding the definition of "SCREEN model" above, AMA 

requests that ADEQ replace the references to "SCREEN model" in R18-2-302.01(C) with 

general references to "screen model." 

R18-2-304 Permit Application Processing Procedures 

AMA requests that ADEQ add "RlS-2-306.02" as additional authority for a proposed 

emission limitation, control, or other requirement in R18-2-304(B)( 4). 

Page 4 of8 

APPENDIX H - PUBLIC COMMENTS
The intent ofthe revised language at R18-2-304(C)(3) is unclear because the reference to 

"R18-2-326(A)(3)" i~ a type of source category for fee purposes and that provision references 

language in R18-2-302 that will no longer exist as proposed under the NSR rule revisions (i.e., 

R18-2-302(B)(2)(a)(i) and (ii)). If ADEQ intends to require an existing Class II non-Title V 

source to obtain a permit revision upon becoming subject to a standard promulgated by the 

Administrator pursuant to Section 112(d) of the Act, this should be addressed in the permit 

revision requirements for Class II sources. The permit application processing provision under 

R18-2-304(C)(3) could then be revised to clarify that a permit revision application necessary to 

address this requirement is considered timely if submitted within 12 months of the date on which 

the standard is promulgated. 

While ADEQ has removed R18-2-304.D provisions regarding applications being deemed 

automatically complete if it does not otherwise notify the applicant within 60 days, it has not 

addressed how and when applicants will be notified of administrative completeness 

determinations. AMA requests that ADEQ provide provisions that clarify this important part of 

the permitting process. 

RlS-2-326 

As noted in comments above, cross references throughout R18-2-326 need to be revised 

to reflect changes to those referenced provisions in the proposed NSR rule revisions. 

RlS-2-334 Minor New Source Review 

Because the permitting exemption (i.e., de minimis) thresholds are already quite small, 

AMA urges ADEQ to replace the proposed RACT trigger of20% of these thresholds with a level 

at or near the permitting exemption thresholds for an emissions unit that does not already have a 

presumptive RACT. There would be little or no utility in conducting a costly case-by-case 

RACT review for units with emissions at the levels proposed. (e.g., 1 tpy for PM2.s). 

Consistent with the comment regarding the definition of "SCREEN model". above, AMA 

requests that ADEQ replace the references to "SCREEN model" in R18-2-334(C)(2) and (G) 

with general references to "screen model." 

As currently drafted, the ambient air quality assessment demonstration provision at R18-

2-334.C.2.b proposes an undefined "exacerbate" standard. Because this proposed approach 

introduces additional uncertainty, could unnecessarily preclude construction or modification 

activities in nonattainment areas, and does not address the fundamental minor NSR program 

requirement to ensure that the source or modification does not result in a violation of the control 

strategy in a nonattainment area (see 40 C.P.R. § 51.160(a)(1)), AMA requests that ADEQ 

reconsider the approach proposed on behalf of its member company, ASARCO, on November 

11, 2010 (attached). 

Page 5 of8 

APPENDIX H - PUBLIC COMMENTS
ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR SOURCES AND MAJOR 

MODIFICATIONS TO EXISTING MAJOR SOURCES 

AMA understands that the intent of the most recent changes to the draft NSR rule 

revisions was to make the major NSR provisions consistent with the corresponding federal NSR 

rules. Although adopting the federal language verbatim would appear to be the simplest and 

most straightforward approach, ADEQ has elected to vary from the federal rules in some cases. 

Because not all such variations are "self-explanatory" as ADEQ suggests, it is unclear whether 

they were specifically intended or the result of an error or omission. While some apparent errors 

are identified below, AMA requests clarification of ADEQ's intent and purpose of the variations 

from the federal major NSR language. 

RlS-2-401 Definitions 

Baseline actual emissions. In subsection (d), the language regarding the calculation of 

baseline actual emissions for existing sources should be revised to address exiting electric utility 

steam generating units (i.e., in accordance with subsection (a)) and other existing emissions units 

(i.e., in accordance with subsection (b)) consistent with the federal rules. The reference to 

"subsection (b)" should be to "subsection (c)" for new emissions units. 

RlS-2-402 General 

ADEQ has proposed to delete the one-year timeframe for issuance of a PSD permit 

currently contained in R18-2-402.D.3. This requirement is statutory (i.e., U.S.C. § 7475(c)) and 

binding upon the agency. See, e.g., Avenal Power Center, LLC v. EPA, D.D.C. Civ. Action No. 

10cv383 (RJL) (May 26, 2010). Because this timeframe would begin when ADEQ deems an 

application administratively complete, AMA requests that ADEQ expressly specify how and 

when PSD permit applicants will be notified of administrative completeness determinations. 

RlS-2-403 Permits for Sources Located in Nonattainment Areas 

The revised language in R18-2-403(F) appears intended to provide clarification on the 

residency timeframe for what is considered a temporary emissions unit. AMA requests that 

ADEQ replace "12 months" with "two years" consistent with EPA guidance (attached). 

RlS-2-404 Offset Standards 

The reference to "subsection (A)(l) or (A)(2)" in R18-2-404(B) should be "subsection 

(B)(1) or (B)(2)." 

RlS-2-405 Special Rule for Major Sources of VOC of Nitrogen Oxides in Ozone 

Nonattainment Areas Classified as Serious or Severe 

Because CAA § 182(f) indicates that the plan provisions required for major stationary 

sources of VOCs shall also apply to major stationary sources of NOx, it is unclear why ADEQ 

has removed the references to NOx in R18-2-405(C) and (D). AMA requests that ADEQ replace 

the NOx references or clarify the basis for their removal. 

Page 6 of8 

APPENDIX H - PUBLIC COMMENTS
R18-2-406(A) Permit Requirements for Sources Located in Attainment and Unclassifiable 

Areas 

The July 1, 2004 version date reference for the Guideline on Air Quality Models at 40 

C.P.R. Part 51,Appendix W in R18-2-406(A)(6) does not reflect the most recent version 

indicated by EPA, November 9, 2005 (70 Fed. Reg. 68,228). 

R18-2-406(E) Permit Requirements for Sources Located in Attainment and Unclassifiable 

Areas 

As explained above, AMA requests that ADEQ replace "12 months" in R18-2-406(E) 

with "two years" consistent with EPA guidance. 

RlS-2-412 PALs 

To remain consistent with the federal rule language at 40 C.P.R. § 51.165(f)(6), AMA 

requests that ADEQ add the following sentence after the second sentence in R18-2-412(E)(l): 

However, a different consecutive 24-month period may be used for each different 

PAL pollutant. 

Also, AMA requests that the following references be corrected: 

• "R18-2-412(F)(1)" in R18-2-412(E)(2) should be to "R18-2-412(E)(l)"; 

• "subsection (L)" in R18-2-412(G)(2)(a)(iii) should be to "subsection (J)"; 

• "subsection (J)" throughout R18-2-412(K) should be to "subsection (K)"; and 

• "R18-2-412(L)(7)" in R18-2-412(M)(1)(g) should be to "R18-2-412(J)(7)." 

AMA thanks you for your consideration of these comments and looks forward to working 

with ADEQ and other stakeholders during the rulemaking process. 

Sincerely, 

Robert E. Quick, Jr. 

cc: Eric Massey, Director, ADEQ Air Quality Division 

Francis McAllister, Chairman, AMA Board of Directors 

Page 7 of8 

APPENDIX H - PUBLIC COMMENTS
The AMA is a non-profit business league comprised of entities engaged in metal mining, 

beneficiation and mineral processing activities in Arizona. Its members include (but are not 

limited to): ASARCO LLC, BHP Copper Inc, Freeport-McMoRan Copper & Gold, Inc., Carlota 

Copper Company, Mineral Park Inc., Rosemont Copper Company, Resolution Copper Company, 

and Peabody Energy. In 2010, AMA member companies produced approximately 63% of the 

nation's newly-mined copper, along with significant amounts of associated valuable co-products 

(e.g. gold, silver, selenium, tellurium and molybdenum). In 2010, the Arizona copper industry 

employed approximately 10,400 people and had an estimated direct and indirect impact on the 

Arizona economy of nearly $12.1 billion. In addition, other AMA members are engaged in the 

mining of coal, uranium, gold and other materials, and make significant contributions to the 

Arizona economy as a result of those activities. The AMA acquires and disseminates scientific 

and business information essential to the development of sound public policies affecting the 

mining industry in Arizona and, where appropriate, AMA participates in the development of 

legislation and regulations affecting mining in Arizona. 

Page 8 of8 

APPENDIX H - PUBLIC COMMENTS
ENVIRONMENTAL PROTECTION AGENCY 

MEMORANDUM 

DATE: December 11, 1978 

SUBJECT: PSD Applicability - Temporary Emissions 

FROM: Director Division of Stationary Source Enforcement 

TO: Anita B. Turpin, Chief Technical Support Section (6AAHAT) Region VI 

This is in response to your October 25, 1978, memo to Rich Biondi which raises two 

questions regarding treatment of construction related emissions under the PSD regulations. 

In response to your first question, construction related emissions should not be considered 

in determining whether a source is subject to PSD review or in determining whether a source is 

required to undergo second-tier review. Potential as well as allowable emissions estimates for a 

source should be calculated without taking into account any emissions which result from 

construction of the source. For example, to determine whether a proposed new chemical process 

plant is a major stationary source or major modification, the emissions which will result only from 

operation of the source and not the emissions which will result from construction of the source 

should be considered. Then, if the source is determined to be a major stationary source or major 

modification and therefore subject to PSD, any emissions resulting from construction of the 

source should be subject to the PSD regulations as temporary emissions. Following this line of 

reasoning, the construction of a building or other structure which is not a major stationary source 

or major modification should not come under PSD review regardless of the magnitude of the 

expected emissions from the construction project. Therefore, the Center City urban revitalization 

project used as an example in your memo would not come under the PSD regulations if the 

project does not involve construction of a major stationary source or major modification. 

APPENDIX H - PUBLIC COMMENTS
In response to your second question, BACT should be applied to the emissions associated 

with the construction of a major stationary source or major modification, and should be included 

as a condition of the PSD permit. Equipment or work practice standards may be specified for 

BACT if an emission standard is not feasible. See 43 FR 26397, Column 3. 

As you noted in your October 25, 1978, memo, Section 52.21(k) (1) (iii) exempts 

temporary emissions from the requirement of paragraphs 1, n, & p. 

If you have any further questions on this issue, please contact Libby Scopino (FTS 

755-2564) of my staff. 

cc: Mike Tmtna, CPDD 

Dave Dunbar, CPDD 

Peter Wyckoff, OGC 

Edward E. Reich 

APPENDIX H - PUBLIC COMMENTS
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

REGION VII 

324 EAST ELEVENTH STREET 

KANSAS CITY, MISSOURI· 64106 

October 9, 1979 

Mr. Harvey D. Shell 

Shell Engineering and Associates 

P.O. Box 1091 

Columbia, Missouri 65205 

Dear Mr. Shell: 

As discussed by Mr. Charles W. Whitmore of my staff on October 5, 1979, 

a source which has permanently ceased operation would be subject to prevention of significant air quality deterioration (PSD) review before it 

could be reactivated. As stated in my letter of September 25, 1979, the 

Environmental Protection Agency (EPA) presumes that any source shut down 

for two years or more has permanently ceased operation. However, the EPA 

also gives the source owner or operator the right to rebut this presumption by demonstrating the shutdown was never intended to be and, in fact, 

was not a permanent shutdown. 

I have included three documents which establish the basis for the two-year 

presumption of permanency. They are the PSD regulations of June 19, 1978, 

the proposed revisions to the PSD regulations, dated September 5, 1979, 

and a determination by the Division of Stationary Source Enforcement, 

designated as PSD 67. 

Section 52.21(k) of the PSD regulations of June 19, 1978, exempts from air 

quality impact analysis emissions which are of a temporary nature. The preamble of these regulations at the bottom of the first column of page 26394 

discusses the definition of "temporary" and establishes that emissions occurring for less than two years in one location would generally be considered 

temporary. 

The PSD 67 discusses a source which was shut down for four years due to an 

industrial accident and now proposes to reopen. The conclusion is made in 

this discussion that the source would be subject to a PSD review if the 

source had been shut down permanently. This decision also states that a 

shutdown lasting for two years or more, or which results in removing the 

source from the emissions inventory of the state is presumed to be permanent. 

APPENDIX H - PUBLIC COMMENTS
2 

In the preamble of the proposed revlslons to the PSD regulations, published 

September 5, 1979, page 51935 discusses the application of offsets within a 

major source complex to avoid an increase of emissions from the complex. 

The first full paragraph in the second column of the page states that emissions from the source over the last one to two year period may be considered 

in determining creditable offset. The preceding paragraph states that an 

obsolete unit which has been shut down for several years would not offer any 

credit for offsets. 

The items discussed above establish EPA policy that temporary emissions 

and temporary shutdowns are considered to be of two-year duration or less. 

It also establishes that the credit which can be given for offset purposes 

must be the emissions of the last one or two year period. Thus, a source 

which has been shut down for more than that length of time could not be 

used for offset although it might physically be capable of operating. It 

then follows that a source which has not operated for in excess of two years 

and is not in the air quality baseline would be considered a new source if 

operation is commenced. 

As stated in my letter of September 25, 1979, the owner or operator may 

rebut the presumption of permanent shutdown by demonstrating that the 

source was never intended to be a permanent shutdown. This could include 

such things as procedures which were taken to maintain the source in operating conditions, maintaining an emissions inventory in the state inventory 

file, or actively pursuing the repair or reconstruction of the source. 

If you wish to discuss this further, please call Mr. Whitmore 

at (816)374-3791. 

Sincerely yours, 

!J~~Jh William A. Spratlin, Jr., P.E. 

Chief, Air Support Branch 

Air and Hazardous Materials Division 

Enclosures 

cc: Robert J. Schreiber, Jr., P.E. 

Staff Director, Air Quality Program 

Jefferson City, Missouri 

Ms. Libby Scopino 

Division of Stationary Source Enforcement 

Washington, D.C. 

APPENDIX H - PUBLIC COMMENTS
January 11, 2012 

Sent via UPS Overnight and via e-mail 

Mr. Steven J. Burr 

Arizona Department of Environmental Quality 

Air Quality Division Director's Office 

1110 W. Washington St. 

Phoenix, AZ 85007 

ADEO 

AIR QUALITY DIVISION 

A elpaso I ~~~ural 

12 JAN 13 AM II: 29 

Re: El Paso Natural Gas Company Comments on Notice of Proposed Rulemaking 

Update of Arizona's new source review rules, 17 Ariz. Reg. 2192 

Dear Mr. Burr: 

El Paso Natural Gas Company (EPNG) is a major interstate transporter of natural gas in the State of 

Arizona. EPNG operates numerous compressor stations and other pipeline support facilities in Arizona 

and is interested in the air quality permitting program in Arizona. EPNG is pleased to submit these 

comments on ADEQ's proposed update to the Arizona new source review (NSR) rules, published at 17 

Ariz. Reg. 2192 on November 4, 2011. 

EPNG supports this effort to update Arizona's major NSR rules to bring them into conformity with the 

federal NSR program codified at 40 C.F.R. § 51.166. EPNG particularly supports ADEQ's decision, in line 

with Arizona legislation, to make the state major NSR program conform as closely as possible to the 

federal template. This conformity greatly eases the regulatory burden on entities, such as EPNG, which 

must operate their facilities across multiple states and permitting jurisdictions. 

On the proposed minor NSR program, EPNG supports ADEQ's steps to update the program so that the 

state can maintain primary authority over air permitting within Arizona's boundaries, as opposed to 

relying upon EPA for a federally-administered program. EPNG is also supportive of the changes that 

ADEQ has made throughout the stakeholder process to make the program more flexible, easier to 

administer, and less burdensome on the regulated community. 

EPNG has four principal remaining concerns about the proposed minor NSR rule. 

1) The RACT threshold should be set at 50% of the permitting exemption threshold, not the 

proposed 20%. EPNG believes that setting the RACT threshold at 20% of the permitting 

exemption threshold is too low. Particularly for particulate matter, this threshold results in a 

potential case-by-case proceeding for units emitting as little as 4 ton/year NOx, 1 ton/year PM2.5 

and 1.5 ton/year PM10. It is not clear that case-by-case reductions at such small quantities will 

provide an air quality benefit . The other state and EPA programs tend to focus on 5 tons/year 

as a general minimum, with slightly lower quantities for PM2.5 and lead. In addition, the 20% 

threshold will increase the number of case by case RACT determinations for normally 

insignificant sources and it introduces some unintended consequences such as the potential for 

permit delays and increased control costs. EPNG recommends that ADEQ move the trigger 

El Paso Natural Gas 

Two North Nevada Colorado Springs, CO 80903 

PO Box 1087 Colorado Springs, CO 80903 

tel 719.473.2300 

APPENDIX H - PUBLIC COMMENTS
EPNG Comments on ADEQ's Proposed Major and Minor NSR Rule 

17 Ariz. Reg. 2192 (Nov. 4, 2011) 

January 11, 2012 

Page 2 

threshold for RACT to 50% of the permitting exemption threshold. At a 50% trigger, there is a 

greater likelihood that emission reductions obtained through the RACT process will result in an 

environmental benefit. 

Accordingly, proposed R18-2-334(C)(1)(a) and (b) should be revised as follows: 

a. In the case of a new source, the owner or operator shall implement RACT for each 

emissions unit that will experience an increase in the potential to emit a regulated 

minor NSR pollutant equal to or greater than 50% of the permitting exemption 

threshold. 

b. In the case of a minor NSR modification, the owner or operator shall implement 

RACT for each emissions unit that will experience an increase in the potential to 

emit of a regulated minor NSR pollutant equal to or greater than 50% of the 

permitting exemption threshold. 

2) Proposed R18-2-334(G) should be revised to clarify that RACT is only required for emissions 

units that exceed the RACT trigger threshold. EPNG notes that there is an apparent error in 

subsection R18-2-334(G)(1). The provision implies that all emission units potentially require 

RACT, regardless of size. This is not correct; only units that exceed the threshold percentage 

(EPNG proposes 50% of the permitting exemption threshold) require RACT. 

Accordingly, R18-2-334(G)(1) should be revised to read as follows: 

1. A RACT standard is imposed under subsection (D)(2) or the emission unit does not 

exceed the RACT threshold established in subsection {C}{1}. 

3) The minor NSR program should allow netting. In the preamble to the proposed rule, ADEQ 

explicitly states that "[t]he netting of increases against decreases to avoid minor NSR 

applicability is not allowed, except in the case of the replacement of an existing emission unit 

with a new one." 17 Ariz. Reg. at 2199. If this is truly a minor NSR program that is concerned 

about ambient impacts, then netting should be allowed because netting looks at the ambient air 

impact of the proposed project in its entirety. By proposing to limit netting to just equipment 

replacement, ADEQ implies that the purpose of this program is not just control of ambient air 

impacts, as required by 40 C.F.R. § 51.160, but also the assertion of state jurisdiction and, 

potentially, "reasonably available control technology" (RACT) requirements even when there is 

no emissions increase or no significant impact on ambient air. 

EPNG believes that exclusion of netting from the definition of "minor NSR modification" is not in 

Arizona's long-term interest. Companies not only choose to change equipment when needed to 

enhance company operations, but also when those equipment changes can be made timely. 

Netting allows changes to occur in a more timely fashion because burdensome case-by-case 

review potentially can be avoided by reducing emissions elsewhere at the source, so that 

emissions impacts are reduced or eliminated. Companies will often choose to make emissions 

reductions greater than what RACT might otherwise require to avoid the delay entailed by caseby-case review and public comment periods. ADEQ's proposed requirement in R18-2-301(12)(c) 

APPENDIX H - PUBLIC COMMENTS
EPNG Comments on ADEQ's Proposed Major and Minor NSR Rule 

17 Ariz. Reg. 2192 (Nov. 4, 2011) 

January 11, 2012 

Page 3 

to apply minor NSR review and its corresponding RACT or modeling evaluation even if netting 

occurs vitiates this incentive. ADEQ should recognize the incentive provided by netting and 

allow it so that Arizona can gain the benefit of additional emissions reductions driven by 

companies seeking to move the permitting process along more rapidly. 

While EPNG strongly supports the proposed allowance for netting for equipment replacements, 

EPNG also strongly urges ADEQ to reconsider its proposed ban on other netting because of the 

delay that disallowing netting imposes upon companies. Instead, ADEQ should revise its rule to 

allow netting and, if a company nets below the permit exemption threshold, allow the project to 

proceed with administrative approval only (e.g., no public comment period). Public comment is 

not needed for changes that are below the proposed permitting exemption threshold because 

the impacts to ambient air are de minimis. 

Accordingly, EPNG recommends that proposed R18-2-301(12)(c) be deleted. 

4) Public comment should be limited to minor NSR modifications that exceed the permit 

exemption threshold. Consistent with EPNG's comments above, EPNG believes that steps in the 

minor NSR process that make it slower and more cumbersome should be avoided. In this case, 

ADEQ has determined that the permitting exemption threshold represents a point below which 

the environmental impacts of a proposed change do not warrant any regulatory control. ADEQ 

should take this concept further and use it to determine when public comment is required. 

EPNG strongly encourages ADEQ to require public comment periods only for those minor NSR 

modifications where the final emissions increase exceeds the permitting exemption threshold. 

This is a good "bright line" rule that works well with EPA guidance. 

Accordingly, EPNG recommends that proposed R18-2-334(G) be revised by adding a new "3." as 

follows: 

3. The emissions increase for each regulated minor NSR pollutant is less than the 

permitting exemption threshold. 

EPNG appreciates the opportunity to present these comments on the proposed major and minor NSR 

rule in the State of Arizona. If you have any questions regarding the foregoing or need further 

information, please contact me at (719) 520-4623 or via e-mail at david.bieda@elpaso.com. 

Respectfully submitted, 

EI/O:::ZJJ"~ David J. Bieda u· 

Air and Carbon Management Group 

Electronic Cc: D. Schnee J. Tangeman A. Pundari L. Nolting 

p:\pwed_epng\arizona\final epng comments on major-minor nsr 2o12-01-11.docx 

APPENDIX H - PUBLIC COMMENTS
ADEO Alf~ QUALITY DIVISIOt~ 

12 JAN II AM II: 39 

Steve Burr 

Arizona Department of Environmental Quality 

1110 W. Washington Street 

Phoenix, Arizona 85007 

RE: Comments on Proposed NSR Rules 

Dear Mr. Burr: 

January 10, 2010 

Intel Corporation (Intel) understands that the Arizona Department of Environmental 

Quality (ADEQ) has proposed rule revisions intended, in part, to incorporate the New Source 

Review (NSR) Reform Rules adopted by the U.S. Environmental Protection Agency (EPA) on 

December 31, 2002. We further understand that the Maricopa County Air Quality Department 

(MCAQD) has been involved in ADEQ's NSR rulemaking process and will likely follow with 

corresponding revisions to its own rules. Intel has reviewed the proposed rules published in the 

Arizona Administrative Register on November 4, 2011 and while we strongly support the 

incorporation of the NSR Reform Rule provisions, we have identified several apparent errors or 

variations from EPA's rule language that would limit the ability to establish Plantwide 

Applicability Limits (PALs) to provide operational flexibility and minimize permitting burdens. 

The PAL provisions have become a critical concern in light of EPA's Tailoring Rule and the 

phase-in of Prevention of Significant Deterioration (PSD) permitting requirements to sources 

based on their greenhouse gas (GHG) emissions. Intel therefore requests that ADEQ consider 

the following comments prior to finalizing its NSR rule revisions. 

I. Background on Intel Operations 

Intel is the world's largest semiconductor manufacturer with fabrication and other 

facilities in Arizona and other states across the U.S. Intel recently announced its decision to 

invest $7 billion to upgrade its U.S. manufacturing facilities to produce the latest, leading edge 

microchip processor technologies and products. Because Intel must make numerous and quick 

process technology changes to remain competitive in the global semiconductor industry, any 

delay and regulatory uncertainty resulting from the application of preconstruction review 

permitting requirements could be disastrous for its domestic operations. Intel's business depends 

upon developing and bringing new products to market regularly and quickly, often requiring 

changes to existing processes to do so. In the semiconductor business, newer higher performing 

products enjoy a significant advantage in the market place. Even small delays in making 

necessary changes can result in substantial missed market opportunities. Requiring permit 

revisions that could take years to process before these changes could be implemented would 

Intel Corporation 

4500 S. Dobson Road 

M/S: OC4-110 

Chandler, AZ 85248 

APPENDIX H - PUBLIC COMMENTS
effectively paralyze Intel's ongoing domestic operations and provide a competitive advantage to 

facilities located outside the U.S. that are able to make such changes without delay. 

Similarly, Intel must be able to predict potential regulatory requirements in order to 

effectively design future processes and controls (which are developed over a 1 0-year period or 

longer) to meet its regulatory obligations and remain a leader in the highly competitive 

semiconductor industry. Because it is unknown what requirements might be imposed during a 

case-by-case review by state and local permitting authorities, Intel's ability to plan ahead and 

design the necessary controls would be severely limited if subject to frequent preconstruction 

review permitting requirements. 

Driven by the incompatibility of traditional permitting approaches with semiconductor 

manufacturing requirements, Intel has long pursued an objective of minimizing our permitting 

burdens. We have done this in two ways. First, we have worked to reduce our emissions of all 

pollutants to achieve "minor source" status. Second, we have worked with EPA and state and 

local permitting authorities to pilot and prove new, innovative, and more flexible permitting 

approaches. As ADEQ is probably aware, Intel partnered with EPA, Maricopa County, and 

members ofthe public to pilot the basic concepts underlying the PAL provisions of EPA's NSR 

Reform Rules. EPA's "Project XL" program at Intel's Ocotillo campus in Chandler, Arizona 

provided an instrumental test of the emissions cap and pre-approved changes features of a PAL. 

Intel is now faced with the reversal of years of planning and extensive resources devoted 

to managing its regulatory obligations due to the application of PSD permitting requirements to 

sources based on their GHG emissions under EPA's Tailoring Rule. Accordingly, Intel believes 

that flexible permitting options such as PALs under EPA's NSR Reform Rules will be critical to 

effectively managing PSD permitting requirements that could otherwise cripple our ability to 

operate and innovate in the U.S. 

II. Comments on PAL Provisions in ADEQ Proposed NSR Rule Revisions 

While ADEQ indicates that it has a duty to ensure that its major NSR rules are consistent 

with and no more stringent than the corresponding EPA regulations and that it is proposing to 

adopt major NSR amendments that are "substantially identical" to EPA's rules, the proposed 

NSR rule revisions contain several variations from the federal rules. Although Intel recognizes 

that some variations reflect certain legal developments (e.g., the stay and reconsideration of 

EPA's Fugitive Emissions Rule), the basis for others is unclear. If such variations are simply 

errors in incorporating the text of the federal rules, Intel requests that ADEQ make appropriate 

corrections or otherwise explain how the variation is consistent with and no more stringent than 

the corresponding EPA rules. 

For example, the proposed definition of "baseline actual emissions" at A.A.C. R18-2-

40 1 (2)( d) for a PAL at a stationary source is inconsistent with the corresponding federal 

definition at 40 C.F.R. § 51.166(b)(47)(iv), which provides: 

For a PAL for a stationary source, the baseline actual emissions shall be 

calculated for existing electric utility steam generating units in accordance with 

the procedures contained in paragraph (b)(47)(i) of this section, for other existing 

Intel Corporation 

4500 S. Dobson Road 

M/S: OC4-110 

APPENDIX H - PUBLIC COMMENTS

Chandler, AZ 85248 
emissions units in accordance with the procedures contained in paragraph 

(b)( 4 7)(ii) of this section, and for a new emissions unit in accordance with the 

procedures contained in paragraph (b)( 4 7)(iii) of this section. 

As currently drafted, ADEQ's proposed definition would instead require that baseline 

actual emissions for all existing emissions units be calculated using the procedures in R18-2-

401(2)(a), which apply only to existing electrical utility steam generating units and would limit 

the contemporaneous period to five years. Furthermore, baseline actual emissions for new 

emissions units would be calculated using the procedures in R18-2-401(2)(b), which apply to any 

existing emissions unit other than an electric utility steam generating unit. Accordingly, Intel 

requests that ADEQ revise R18-2-401(2)(d) as follows to be consistent with the corresponding 

federal rules: 

For a PAL for a stationary source, the baseline actual emissions shall be 

calculated for existing electric utility steam generating units in accordance with 

the procedures contained in subsection (2)(a), for other existing emissions units in 

accordance with the procedures contained in subsection (2)(b ), and for a new 

emissions unit in accordance with the procedures contained in subsection (2)(c). 

Portions of the proposed PAL provisions at R18-2-412 are also inconsistent with the 

corresponding federal rules. For example, 40 C.P.R.§ 51.165(f)(6)(i) provides: 

Setting the 1 0-year actuals PAL level. (i) Except as provided in paragraph 

(f)( 6)(ii) of this section, the plan shall provide that the actuals PAL level for a 

major stationary source shall be established as the sum of the baseline actual 

emissions (as defined in paragraph (a)( 1 )( xxxv) of this section) of the PAL 

pollutant for each emissions unit at the source; plus an amount equal to the 

applicable significant level for the PAL pollutant under paragraph (a)(l)(x) of this 

section or under the Act, whichever is lower. When establishing the actuals PAL 

level, for a PAL pollutant, only one consecutive 24-month period must be used to 

determine the baseline actual emissions for all existing emissions units. However, 

a different consecutive 24-month period may be used for each different PAL 

pollutant. Emissions associated with units that were permanently shut down after 

this 24-month period must be subtracted from the PAL level. The reviewing 

authority shall specify a reduced PAL level(s) (in tons/yr) in the PAL permit to 

become effective on the future compliance date(s) of any applicable Federal or 

State regulatory requirement(s) that the reviewing authority is aware of prior to 

issuance of the PAL permit. For instance, if the source owner or operator will be 

required to reduce emissions from industrial boilers in half from baseline 

emissions of 60 ppm NOx to a new rule limit of 30 ppm, then the permit shall 

contain a future effective PAL level that is equal to the current PAL level reduced 

by half of the original baseline emissions of such unit(s). 

As currently proposed, R18-2-412(E)(l) omits the third sentence contained in the federal 

provision above. Intel therefore requests that ADEQ add the following clarifying sentence after 

the second sentence in R18-2-412(E)(l): 

Intel Corporation 

4500 S. Dobson Road 

M/5: OC4-110 

APPENDIX H - PUBLIC COMMENTS

Chandler, AZ 85248 
However, a different consecutive 24-month period may be used for each different 

PAL pollutant." 

It also appears that several cross references in Rl8-2-412 need correction. For example, 

the reference to "subsection (F)(l)" in R18-2-412(E)(2) should be to "subsection (E)(l)." In 

addition, reference to "subsection (L)" in R18-2-412(G)(2)(a)(iii) should be to "subsection (J)"; 

references to "subsection (J)" throughout R18-2-412(K) should be to "subsection (K)"; and 

reference to "subsection (L)(7)" in R18-2-412(M)(l)(f) should be to "subsection (J)(7)." 

Intel presumes that the items identified above were simply an oversight and not an 

intentional variation from the federal rules. However, if the latter is the case, Intel requests that 

ADEQ reconsider such variations and ensure that they are consistent with and no more stringent 

than the corresponding federal rules. As explained previously, the delays inherent in permitting 

and the inability to predict and manage regulatory obligations could be devastating for operations 

such as Intel's. Permitting delays and uncertain regulatory requirements would significantly 

hinder Intel's ability to plan, innovate, and quickly respond to market conditions, which would 

likely result in lost market opportunities and revenue, decline in market share and semiconductor 

manufacturing, lost jobs, and the cascading effect on Arizona's already ailing economy. It 

therefore appears critical that ADEQ provide the full scope of flexibility afforded under EPA's 

NSR Reform Rules-especially in light of the additional burdens from application of PSD 

requirements to sources of GHG emissions. Providing the means for facilities to use flexible 

mechanisms such as PALs to avoid these permitting burdens also promotes significant 

environmental benefits by providing certainty regarding the emissions impact of a facility and a 

powerful incentive for pollution prevention efforts. Indeed, PALs allow facility resources to be 

directed at reducing emissions rather than permitting paperwork. 

Intel hopes that ADEQ will give these comments due consideration. If you would like to 

discuss any of the comments in more detail, please contact Todd Rallison at (480) 715-6454, 

todd.w.rallison@intel.com or me at (480) 715 5870, tim.g.higgs@intel.com. 

Sincerely, 

~/. ~~-

~im Higgs .. 

Environmental Engineer 

Intel Corporation 

Intel Corporation 

4500 S. Dobson Road 

M/5: OC4-110 

APPENDIX H - PUBLIC COMMENTS

Chandler, AZ 85248 
APPENDIX H - PUBLIC COMMENTS
APPENDIX H - PUBLIC COMMENTS
-

Office of the Director 

William Wiley 

1001 North Central :\xenue 

Suite #500 

Phoenix, Ariwna 85004 

602-506-6443 - desk 

602-372-6440 - fax 

Maricopa County 

Air Quality Department 

January 12,2012 

Mr. Steven]- Burr 

Arizona Department of Environmental Quality 

Air Quality Division Director's Office 

1110 W. Washington St. 

Phoenix, AZ 85007 

VIAE-MAIL 

RE: ADEQ N otice of Proposed Rulemaking 17 A.A.R. 2192, November 4, 2011 

Dear Mr. Burr: 

The Maricopa County Air Quality Department (MCAQD) appreciates the opportunity to 

submit comments regarding a proposed rule to update Arizona's new source review ( SR) 

rules published in the Arizona Administrative Register (A.A.R. 2192, November 4, 2011). 

MCAQD supports the Arizona D epartment of Environmental Quality's (ADEQ) proposed 

revisions to the NSR rules in order to secure their approval as part of the state 

implementation plan (SIP) under the federal Clean Air Act. Once approved, the amended 

rules will eliminate the significant discrepancy, known as the "SIP gap," between the NSR 

rules in the Arizona Administrative Code and the rules that have been approved by the 

federal Environmental Protection Agency (EPA) into the SIP. 

While MCAQD generally supports ADEQ's proposed rules, MCAQD is concerned that 

ADEQ's proposals do not fully address the peculiar local conditions leading to 

nonattainment of the National Ambient Air Quality Standards (NAAQS) in Maricopa 

County's ozone and particulate matter nonattainment areas. MCAQD asks that ADEQ 

confirm that it's analysis for this proposed NSR rulemaking concentrates on the air quality 

challenges, topography, meteorology and the source types and sizes present in those 

portions of the state over which ADEQ has jurisdiction. In some instances, ADEQ's 

proposals may not provide for adequate protection of the NAAQS, effective 

implementation of control measures for nonattainment area plans submitted for Maricopa 

County, or provide a level playing field for all sources located in the county. Our concerns 

with specific elements contained in the proposed rulemaking are listed below. 

Permitting and Registration Thresholds -The permitting and registration thresholds are too 

high for the Maricopa County nonattainment areas. Numerous smaller sources (commonly 

called "area sources'') contribute significantly to the nonattainment problems in Maricopa 

County. Lower thresholds will be necessary to continue to effectively implement existing 

control measures contained in the SIP for the Maricopa County nonattainmcnt areas. 

Protecting our most vital, natural resource; air. 

www.maricopa.gov /aCJ. 

APPENDIX H - PUBLIC COMMENTS
:\DEQ Proposed Rulemaking, S. Burr 

January 12, 2012 

Page 2 of2 

Registration Inspection Frequency - In the proposed rulemaking preamble, ADEQ 

estimates that it will conduct a combination of complaint-based and audit inspections of 

10% of registered sources per year. The proposed inspection frequency of 10% per year of 

registered sources will not satisfy the federal practical enforceability guidance for 

nonattainment area control measures or allow Maricopa County to demonstrate that it has 

adequate resources to implement the control measures in the existing nonattainment area 

SIPs. 

Allowing the Installation of Controls to Avoid a Permit - In Maricopa County's 

nonattainment areas, many rules already require the installation of control technology. 

Allowing the installation of controls to avoid a permit and obtain a registration may raise 

equity concerns and, practically, is only an option for very simple sources whose emissions 

do not contain hazardous air pollutants. 

Control Technology Requirements - The proposed rules contain prov1s10ns for minor 

sources that allow control technology to be optional if a modeling analysis is submitted. 

First, these provisions are not appropriate for nonattainment areas that are required by the 

Clean Air Act to implement reasonably available control technology (RACT) or best 

available control technology (BACT), depending on the pollutant. Second, modeling to 

determine minor source impacts on the NAAQS is not technically feasible in ozone 

nonattainment areas. Third, implementing control technology at the time of installation can 

result in better environmental results at lower costs than retrofitting sources later, a 

significant factor to consider in nonattainment areas that experience significant growth while 

working to attain and maintain the federal NAAQS. Finally, the optional control provisions 

may not provide a level playing for all sources locating or located in the county. MCAQD 

firmly believes in operating a fair and equitable regulatory program by balancing the 

environmental and economic needs of the county. 

Thank you for your commitment to clean air. MCAQD appreciates the opportunity to 

comment on this proposed rulemaking. If you have any questions regarding these 

comments, please contact Jo Crumbaker of my staff at (602) 506-6705 or me at (602) 506-

6701. 

Cc: Joy Rich 

J o Crumbaker 

Johanna Kuspert 

Lucinda Swann 

APPENDIX H - PUBLIC COMMENTS